Project management Fundamental concepts Recent pdf, ppt, video versions of the course available here: project management Image: public domain (source) 1
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Objectives Understand team structures in projects Explain what a project is Introduction Objectives Course plan Calculate life cycle cost FUNDAMENTALS Characterize the types of projects in business 4
Course outline 1. What is a project? 2. Projects in business 3. How is a project organized? Introduction Objectives Course plan Project 4. Case studies 5. Project team structure 5
Fundamentals Chapter 1 Chapter 1 Definition Why projects? Managing a projet Training What is a project? Image: cc-by source
You said "project"? Chapter 1 Definition Why projects? Managing a projet Training Image : cc-by ou pd source1, source2, source3, source4 7
What is a project? Chapter 1 Definition Why projects? Managing a projet Training We talk about projects every day: what is it? 1. Temporary: a start and an end 2. Prepare before acting, stages 3. Result = the deliverables ISO 21500 - PMBOK Guide Image: cc-by source 8
Why projects? Productivity = Value Creation Cost Costs: is no longer the best way to go Chapter 1 Definition Why projects? Managing a projet Training Competition Globalization Create more value: innovate Innovation = Project 9
The paradox of project management Freedom of action Project experience Chapter 1 Definition Why projects? Managing a projet Training time At the project start: more flexibility Project termination: you know what you should have done, but too late 10
From student to professional Chapter 1 Definition Why projects? Managing a projet Training A student: 1. alone 2. an isolated, abstract problem 3. clearly defined: the data are available 4. well-posed problem: a unique solution Images : source 1 source 2 A professional: 1. with a team, for a client 2. interconnected, concrete problems 3. unclear 4. with many possible solutions 11
Summary Training Chapter 1 Project? Definition Why projects? Managing a projet Training Innovation = Project To create more value: innovate 12
Further exploration Chapter 1 Definition Why projects? Managing a projet In three essential words : define the concept of project Think of an innovation that you would like to implement What do you think are the four most important realizations in your country over the last ten years? Do they match the definition of a project? Training Quiz 13
Course outline 1. What is a project? 2. Projects in business 3. How is a project organized? 4. Case studies Project 5. Project team structure 14
Fundamentals Chapter 2 Chapter 2 Projects in business Typology of projects Project profiles Projects and Operations Projects in business Image : cc-by source
Position of projects in the organizational chart of a company Team P Management Project Chapter 2 P Projects in business Typology of projects P Division P Project profiles Projects and Operations 16
Team Position of projects in the organizational chart of a company Company 2 Joint-Venture Project Chapter 2 Management Projects in business Typology of projects Project profiles Division Projects and Operations 17
Review of projects in a multinational company: a typology Size New factory R&D projects Chapter 2 Complexity Projects in business Typology of projects Project profiles Projects and Operations Small local projects 18
Project profiles Size Chapter 2 Projects in business Typology of projects Project profiles Projects and Operations - W E A K Stakes + Material output Complexity Innovation Team autonomy Integration in the organization S T R O N G PICQ (1999 : 42) 19
Project profiles: quality certification Small size Large size Low stakes High stakes Immaterial deliverable Material deliverable Chapter 2 Low complexity High complexity Projects in business Low level of innovation High level of innovation Typology of projects Weak autonomy Strong autonomy Project profiles Projects and Operations Project is integrated in an organization Organization is constructed around the project PICQ (1999 : 42) 20
Project profiles: productivity service Small size Large size Low stakes High stakes Immaterial deliverable Material deliverable Low complexity High complexity Chapter 2 Low level of innovation High level of innovation Projects in business Weak autonomy Strong autonomy Typology of projects Project profiles Project is integrated in an organization Organization is constructed around the project Projects and Operations Other approaches to analyzing a project: 5W s : who, what, where, when, why Strategic analysis 21
Project vs. Operations Chapter 2 Projects in business Typology of projects Project profiles Projects and Operations Image : cc-by (source1 source2) 22
Chapter 2 Projects in business Typology of projects Project profiles Projects and Operations Difference between project and operations PROJECT Environment Unknown, Innovative, temporary organization Unique process Irreversible decisions High uncertainty Exogeneous variables, degrees of freedom Negative cash-flow Investment is needed before getting returns Create future activities that ensure the future of the business Difficulty Manage a complex leap into the unknown OPERATIONS Environment Repetitive, stable organization Recurring process Reversible decisions Low uncertainty Endogeneous variables, controled actions Positive cash-flow Functioning generates a profit Maintain existing activities that keep the business running Difficulty Intervene rapidly in the event of a blockage 23
Chapter 2 Projects in business Difference between project and operations PROJECT Environment Unknown: Innovative, temporary organization Unique process Irreversible decisions High uncertainty Exogeneous variables, degrees of freedom Negative cash-flow Invest before getting a return OPERATIONS Environment Repetitive: stable organization Recurring process Reversible decisions Low uncertainty Endogeneous variables, controled actions Positive cash-flow Operating generates a profit Typology of projects Project profiles Projects and Operations Create future activities that ensure the future of the business Difficulty Managing a complex leap into the unknown Maintain existing activities that keep the business running Difficulty Intervening quickly in case of a blockage 24
Summary Position Typology Chapter 2 Projects in business Projects in business Typology of projects Project profiles Projects and Operations Profile Projects vs Operations 25
Further exploration Professionally, do you prefer working on a project or in operations management? Why? Choose three projects that you know Chapter 2 Projects in business Typology of projects Project profiles Characterize their profiles Think of other elements to include in the project profile Projects and Operations Quiz 26
1. What is a project? 2. Projects in business 3. How is a project organized? 4. Case studies Project 5. Project team structure
Fundamentals Chapter 3 Chapter 3 Waterfall dev. Concurrent engineering Cost of a project Life cycle cost How is a project organized? Image : cc-by source
Sequential development: waterfall Commercial reflection Design Decision to launch the project Then Transfer of files Chapter 3 Waterfall dev. Concurrent engineering Cost of a project Life cycle cost Industrial definition Then Industrialization Then Transfer of files Transfer of files Qualification 29
Sequential development: waterfall Commercial reflection Design Decision to launch the project Then Transfer of files Chapter 3 Waterfall dev. Concurrent engineering Cost of a project Life cycle cost Industrial definition Then Industrialization Then Transfer of files Transfer of files Qualification 30
Sequential vs. concurrent engineering Time 60 50 40 30 20 10 0 Design Sequential development Industrial definition Industrialization Qualif Prod Chapter 3 Concurrent engineering Waterfall dev. Concurrent engineering Cost of a project Marketing Needs Preproject Design Industrial definition Time gain Life cycle cost Industrialization Process Qualif Prod 01 02 A B C D 31
Cost of a project and a product Use costs Start of the project Production costs Use and After-sales Chapter 3 Waterfall dev. Development Industrialization Mass production Concurrent engineering Cost of a project 01 02 A B C D Life cycle cost Investment 32
Notion of life cycle cost Cost Industrial Chapter 3 Waterfall dev. Concurrent engineering Cost of a project Life cycle cost Development cost Industrialization cost Client-User Community Production cost Use and maintenance cost Termination cost t 33
Summary Waterfall development Concurrent engineering Chapter 3 Waterfall dev. Concurrent engineering Cost of a project Life cycle cost Organization of a project Cost of a project Life cycle cost 34
Further exploration Chapter 3 Waterfall dev. Concurrent engineering Cost of a project Life cycle cost In your activities Design the stages of a project in... a) sequential mode b) concurrent mode What do you deduce from this? Concerning the cost of this project, who paid and how? Quiz 35
1. What is a project? 2. Projects in business 3. How is a project organized? 4. Case studies Project 5. Project team structure 36
Fundamentals Chapter 4 Chapter 4 Project / product owner Case of automobile industry Case of civil engineering Case studies Image: cc-by, source 37
Define and distinguish the responsabilities Product owner (Client) Project owner (Engineer) Chapter 4 Subcontracting Coordination Project / product owner Case of automobile industry Case of civil engineering Image: cc-by, source 38
Distribution of roles across functions: example of automobile industry Preliminary phases Development phases Phases Actors Marketing needs Opportunities 01 Pre-projects Feasability 02 Design A Industrial definition B Industrialization C Certification D Marketing, Benchmarking Upstream technical research Design Design office Project Group Purchasing Methods Quality Logistics Suppliers Users Appointment of project manager Launch 39
Distribution of roles across functions: example of automobile industry Preliminary phases Development phases Phases Actors Marketing needs Opportunities 01 Pre-projects Feasability 02 Design A Industrial definition B Industrialization C Certification D Marketing, Benchmarking Upstream technical research Design Design office Project Team Purchasing Methods Quality Logistics Suppliers Users Appointment of project manager Launch 40
Pre-program Distribution of roles: example of civil engineering Program Draft Preliminary pre-project Detailed pre-project Tender documents Pricing Markets and administrative formalities Preparation Execution Monitoring Reception, work audit Programming (opportunity studies) Design, negociation Consultations and studies Realization Phases Actors Product owner Design architect Design office, Client Commercial management Pricing office, Eng Works and methods management Work force Own production Subcontractors 41
Pre-program Distribution of roles: example of civil engineering Program Draft Preliminary pre-project Detailed pre-project Tender documents Pricing Markets and administrative formalities Preparation Execution Monitoring Delivery Programming (opportunity studies) Design, negociation Consultations and studies Realization Phases Actors Product owner Architect Design office, Client Commercial management Pricing office Works and methods management Workforce Own production Subcontractors
Product owner Summary Project owner Subcontractors Chapter 4 Project / product owner Case of automobile industry Case of civil engineering Distribution of roles Case studies Automobile industry Image: DP source Civil engineering 43
Further exploration An internal project in your company is failing, but its manager says: "we have already spent 40% of the budget, there is no going back". What is your response? Chapter 4 Project / product owner Case of automobile industry Case of civil engineering In a past project for which you were involved List all the roles and responsibilities of the actors Did the elaboration of this grid help you? Quiz 44
Course outline 1. What is a project? 2. Projects in business 3. How is a project organized? 4. Case studies Project 5. Project team structure 45
Fundamentals Chapter 5 Chapter 5 Functional Weak matrix Strong matrix Task force Organization/tools Project team structure Image : cc-by source 46
Project support structures (1/4) Management Specialist actors in the project Chapter 5 Functional Weak matrix Strong matrix Task force Organization/tools Project in a functional structure ECOSIP/GIARD & MIDLER (1993) 47
Project support structures (2/4) Management Specialist actors in the project Chapter 5 Functional Weak matrix Strong matrix Task force Organization/tools Coordinator Sector project leader "Weak matrix" structure 48
Project support structures (3/4) Management Actors in the project Chapter 5 Functional Weak matrix Strong matrix Task force Organization/tools Project manager Sector project leader "Strong matrix" structure 49
Project support structures (4/4) Management Chapter 5 Functional Weak matrix Strong matrix Task force Organization/tools Project manager "Dedicated team" structure, task force 50
Questions Organization Tools Chapter 5 Functional Project Project team? Work breakdown? Scheduling? Meeting, todo lists Planning, budget Progress indicators Risk management Weak matrix Strong matrix Task force Organization/tools Company Sectors and careers Organizational structure Continue/stop a project? Internal or subcontracted? Planning / strategy Project portfolio General overseeing Budgetary control 51
Summary Chapter 5 Functional Weak matrix Strong matrix Task force Organization/tools Support structures in an organization 52
Further exploration Chapter 5 Functional Weak matrix Strong matrix Task force Organization/tools Studying means working in a matrix environment: as a student, you divide your time between different subjects. How did you manage your priorities? What improvements would you suggest to the school/university? For two projects that you know What type of support-structure? Is it appropriate? Quiz 53
Fundamentals Conclusion
Project management Anticipate = be proactive Be flexible in the initial phases of the project Adapted and effective solutions 55
Two issues in the organization of projects After the end of a project Knowledge Management 56
Are you now able to? Understand team structures and configurations in project mode Explain what a project is FUNDAMENTALS Calculate life cycle cost Characterize the types of project in business 57