Project Management. 1. Introduction

Transcription

1 Project Management 1. Introduction a. Course aim b. Business organization development c. The Project : definition and characteristics d. Project Management e. Conditions to manage a good project

2 Project definition Projects mean achieving defined targets respecting time and budget. Projects cut the traditional organization lines (functional). Projects are unique tasks never similar to past projects A project may be like a complete new product development process, a new company or another specific result. The target to achieve, often, is more important than the process adopted to achieve it. Both, product and process, have to be the object of an effective management system da R.D. Archibald, Managing High-Technology Programs and Projects, New York,Wiley, 1976.

3 Project definition What is a project? Every non-routine job Something finalized to achieve specific operational results Something having constraints of: time cost quality involving several units or roles belonging to different functions, temporarily joined in an inter-functional team.

4 Project definition What is a process? OWNER INPUT OUTPUT ACTIVITY ACTIVITY ACTIVITY ACTIVITY ACTIVITY Target/ customer Organized set of activities and decisions, aimed to create an output requested by a customer, who assigns a defined value to it Perf. index 1 Perf. index 2 Perf. index n KPI

5 Project definition Project is a impulse process Project Process Single output Explicit targets Defined time Parallel interdependences Repetitive and standardized Implicit targets Permanent Sequential interdependences Impulse process Flow process

6 Project definition Project and process some examples Impulse process Internal customer Management innovation Organization innovation Research Internal production Maintenance Planning Finance and control Product development Marketing activities Sales Service External customer Flow process

7 Project definition Project and process management guidelines How to control Focus on Report standardization Frequency Information Impulse process Feed-fwd (forecast) Effectiveness (things happen) Low Upon event Timely Flow process Feed-back (report) Efficiency (resources used) High Defined frequency Precise

8 Project definition Process and project INPUT OWNER PROCESS OUTPUT TARGET Perf. Index 1 Perf. Index 2 Perf. Index 3 KPI TARGETS RESOURCES TIME PLANNING PROJECTS

9 Project definition Typical business projects are: A new product A new organizational procedure; Implementation of a new cost control system; A new production site (facility); Production transfer between two facilities; A new market conquest; A new product market launch; Reengineering of a organization structure;

10 Project definition Projects: Have defined targets Have a Start and an End Are managed by a specific organization Have Project Managers responsible for their development Are defined by specifying starting points, intermediate activities and final results Are single efforts to achieve explicit targets in a defined time

11 Project definition The Human Resource: the most precious resource. Projects are places where people work together The correct spirit/culture to achieve results together is cooperation The project spirit : Taking part in it, Giving help, Achieving goals with the same individual dignity

12 Project definition Kinds of projects Requests known in advance (the customer explains specifications) Requests unknown in advance (customer s target) External customer Internal customer Design-to-order projects Internal services prjs New product development Huge innovation

13 Project Management 1. Introduction a. Course aim b. Business organization development c. The Project : definition and characteristics d. Project Management e. Conditions to manage a good project

14 Project Management Old history For which of you, desiring to put up a tower, does not first give much thought to the price, if he will have enough to make it complete? For fear that if he makes a start and is not able to go on with it to the end, all who see it will be laughing at him and saying, This man made a start at building and is not able to make it complete. Or what king, going to war with another king, will not first take thought if he will be strong enough, with ten thousand men, to keep off him who comes against him with twenty thousand? Or while the other is still a great distance away, he sends representatives requesting conditions of peace. (Lc 14, 28-32)

15 Project Management Historic evolution The issue of managing projects came out in ancient times in several ways (military, construction, buildings, shipping, etc ) It became object of study starting from the end of the XIX century (Gantt) It was developed during the WWII because of war military industry needs In the middle of the XX century, the first formalized techniques were born (Pert/CPM) to manage military and aerospace projects From the 60 s some tools enter in the managing system of big industries (DuPont, Remington Rand, ecc ) From the 80 s it was extended to other kind of companies and business During the 90 s it became the most common method to manage projects and no-repetitive activities in business and organizations.

16 Project Management Historic evolution A historical change of view: the Liberty ships case

17 Project Management Historic evolution A historical change of view: the Apollo Space Program case

18 Project Management What is the Project Management? PM is a method that considers a project like a target to achieve respecting time, cost and quality PM is a systemic application of knowledge, capabilities, tools and techniques to every project s activity in order to achieve the business target! PM requests a balance between: Target, time, cost, quality Needs of people involved in it Defined and non-defined requests (expectations).

19 Project Management PM basic elements: Setting targets (Goal Setting) Setting models to evaluate results Planning activities to achieve results Defining resources needed Controlling activities progress Setting corrective actions Evaluating results

20 Project Management The project target: Is not often easy to define Is not often easy to communicate If the target is well defined and shared, then the probabilities to achieve it are huge (goal setting) A defined target is not easy to modify There are primary and secondary targets Is very important to balance target and time Challenging but realistic and reachable goals - Agreed upon - Assignment of priorities - Goals measurable according to specific criteria previously defined - Clarity of operational conditions needed to achieve targets - Complex goals: interdepartmental projects Clip Coach Carter Goal setting

21 Project Management Project target: must be S.M.A.R.T. Specific targets must be specific and non generic Measurable targets must be measurable with numbers Achievable targets must be achievable; impossible missions are non admitted! Relevant targets must be important for business AND for involved people Timed targets must be referred to a time limit

22 Project Management Results evaluation (terms/guidelines): Quality of results (compared with specifications) Forecasted time observance Resources used in a correct way Satisfaction of who was involved in the project

23 Project Management Planning: Planning is the main PM tool Planning is used to forecast and anticipate events and activities in order to prepare the team to face them in the best way Planning allows to understand the impacts of un-expected events and to choose the correct action to solve the problem Planning allows to be flexible because is a strong What-If tool

24 Project Management 1. Introduction a. Course aim b. Business organization development c. The Project : definition and characteristics d. Project Management e. Conditions to manage a good project

25 Conditions to manage projects Why do many projects fail? Why don t many projects respect timing? Why do many projects end up with higher costs than anticipated? Why do many projects have poor results? Why do many projects end somewhere in the middle of their life? What is so difficult in project management???

26 Conditions to manage projects If basic conditions are respected, we can reduce failure probability. Those conditions may belong to two classes: RATIONAL It s the set of rules and methods to manage projects; and is about basic variables: targets, resources, skills, tools, etc RELATIONAL PM is an organization method that enhances the relationship dynamics (work with ), therefore everything is connected with teamwork, relations between people and external functions, environment, market, customer, etc

27 Conditions to manage projects Organizational environment People Activities Effectiveness Efficiency Tools Structure

28 Conditions to manage projects RATIONAL DIMENSION = we need to define: Targets What do we have to do? Time When do we have to end? Activities What is the sequence of activities to achieve the target? Financial resources How much money will it cost? Human resources Who will perform the activities? Control How can we measure the project progress? Corrective actions What can we do when something unexpected happens? Final result What product/service will result from the project? End When can we say that the project is ended? Result evaluation Who and how will evaluate results?

29 Conditions to manage projects RATIONAL DIMENSION = The Plan Activities map Planning is the tool that, in a formal way, allows us to set all the activities needed to manage the project and to achieve the target. The plan allows us to control milestones, deliveries, responsibilities (who does what), progress (delay, advance) and is the basis for all decisions about the project

30 Conditions to manage projects RATIONAL DIMENSION = The Plan Tool to discover and solve problems The plan is the most effective tool to discover every potential project problem or risk and understand the impact on the final target. It is a very effective what-if tool to make the best decisions or to define alternative scenarios.

31 Conditions to manage projects RATIONAL DIMENSION = The Plan Communication tool The plan is a fantastic communication tool for who is involved in the project (always updated with: what to do, who is responsible, when, who with, costs,.and the project progress), as well as for the management and the external organization. This is a very important thing because when everybody knows the project s Big picture, they may be more effective and accurate in answering. Africa 1942 Case

32 Conditions to manage projects RATIONAL DIMENSION = The Plan Planning became an habit Often the plan is just a piece of paper. A beautiful colored picture in the wall Done and forgotten. No one finds it useful. Plan must be a live tool, updated with frequency. It is the organizational environment of the project. It shows what, how, when, who of the project!! To build a good project environment, everyone in the company must know planning culture, starting from top management. Every manager must know the planning tool and technique!!

33 Conditions to manage projects RATIONAL DIMENSION = The Plan The planning body trap Lover planner the plan is not the target of the project! Deus plan the plan is not untouchable. Planning is necessary to check what-if scenarios and alternative choices, so it is normal to change it! Tenacity (excessive) the plan represents activities and events, it doesn t represent the reality in all its details Forgotten picture if the plan is too complex, it will not be a work tool, but it will end its days hanged in some wall like a beautiful picture.as a pop art masterpiece!