Larson PPT Chap001 JMc - Lecture notes 1,4,5,6,7,8,10,11,13,14 PDF

Preview

Summary

Download Larson PPT Chap001 JMc - Lecture notes 1,4,5,6,7,8,10,11,13,14 PDF

Description

31/07/2016

Larson PROJECT MANAGEMENT Chapter 1 Modern project management

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-1

1–1

What is a project? •

Project defined – A complex, non-routine, one-time effort limited by time, budget, resources and performance specifications designed to meet customer needs

•

Major characteristics of a project – Has an established objective – Has a defined life span with a beginning and an end – Requires across-the-organisation participation. – Typically involves doing something that has never been done before – Has specific time, cost and performance requirements

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-2

1–2

1

31/07/2016

Programs versus projects •

Program defined – A series of coordinated, related, multiple projects that continue over an extended time and are intended to achieve a goal – A higher level group of projects targeted at a common goal – Example:  Project: completion of a required course in project management  Program: completion of all courses required for a business major

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-3

1–3

Defintion Set of activities that consume resources, carried out to an agreed scope, agreed duration, and agreed cost with the purpose of producing an output to an agreed quality.

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-4

2

31/07/2016

Comparison of routine work with projects Routine, repetitive work

Projects

Taking class notes

Writing a term paper

Daily entering sales receipts into the accounting ledger

Setting up a sales kiosk for a professional accounting meeting

Responding to a supplychain request

Developing a supply-chain information system

Practising scales on the piano

Writing a new piano piece

Routine manufacture of an Apple iPod

Designing an iPod that is approximately 2 × 4 cm, interfaces with PC and stores 10 000 songs

Attaching tags on a manufactured product

Wire-tag projects for Target and David Jones

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-5

1–5

Project life cycle

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-6

1–6

3

31/07/2016

The challenge of project management •

The project manager: – manages temporary, non-repetitive activities and frequently acts independently of the formal organisation  marshals resources for the project

 is linked directly to the customer interface  provides direction, coordination, and integration to the project team  is responsible for performance and success of the project – must induce the right people at the right time to address the right issues and make the right decisions

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-7

1–7

The importance of project management •

Factors leading to the increased use of project management: – compression of the product life cycle – knowledge explosion – triple bottom line (planet, people, profit) – corporate downsizing – increased customer focus – small projects represent big problems

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-8

1–8

4

31/07/2016

Benefits of an integrative approach •

Integration of project management provides senior management with: – an overview of all project management activities – a big picture of how organisational resources are used – a risk assessment of their portfolio of projects – a rough metric of the firm’s improvement in managing projects relative to others in the industry – linkages of senior management with actual project execution management

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-9

1–9

Integrated management of projects

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-10

5

31/07/2016

Alignment of Projects with Organisational Strategy

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-11

Project Management Today: An Holistic Approach • Includes: – Project selection – Monitoring aggregate resource levels and skills

– – – –

Use of best practices Balancing projects in a portfolio Improving communication among all stakeholders An organisational perspective, beyond silo thinking – Improving management of projects over time

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-12

6

31/07/2016

Integration of project with organisational strategy •

Use of selection criteria to ensure strategic alignment and project priorities

•

A selection process that is systematic, open, consistent and balanced Project portfolio management

• •

Value not just on ROI but strategic fit and best use of resources

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-13

Major functions of portfolio management •

Oversee project selection

•

Monitor aggregate resource levels and skills

•

Encourage use of best practices

•

Balance projects in the portfolio in order to represent a risk level appropriate to the organisation

•

Improve communication among all stakeholders

•

Create a total organisational perspective that goes beyond silo thinking

•

Improve overall management of projects over time

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-14

1–14

7

31/07/2016

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-15

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-16

8

31/07/2016

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-17

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-18

9

31/07/2016

Major Processes and Areas of Knowledge in Projects

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-19

Technical and sociocultural dimensions ‘Good project managers balance their attention to both the technical and the sociocultural aspects of project management.’ Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

1-20

1–20

10

Larson Project Management Chapter 4 Defining the project

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-1

1–1

Defining the project Step 1: Defining the project scope Step 2: Establishing project priorities Step 3: Creating the work breakdown structure (WBS) Step 4: Integrating the WBS with the organisation Step 5: Coding the WBS for the information system Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-2

1

Step 1: Defining the project scope •

Project scope – A definition of the end result or mission of the project—a product or service for the client/customer—in specific, tangible and measurable terms

•

Purpose of the scope statement – To clearly define the deliverable(s) for the end user – To focus the project on successful completion of its goals – To be used by the project owner and participants as a planning tool and for measuring project success

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-3

Project scope: checklist 1. Project objective 2. Deliverables 3. Milestones 4. Technical requirements

5. Limits and exclusions 6. Reviews with customer

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-4

2

Project scope: terms and definitions • Scope statement – Also called a statement of work (SOW) • Project charter – Can contain an expanded version of scope statement – A document authorising the project manager to initiate and lead the project • Scope creep – The tendency for the project scope to expand over time due to changing requirements, specifications and priorities Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-5

Step 2: Establishing project priorities •

Causes of project trade-offs – Shifts in the relative importance of criteria related to cost, time and performance parameters  Budget–Cost

•

 Schedule–Time  Performance–Scope Managing the priorities of project trade-offs – Constrain: a parameter is a fixed requirement – Enhance: optimising one criterion over others – Accept: reducing (or not meeting) a criterion requirement Use of a priority matrix before project commences is ideal.

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-6

3

Project management trade-offs

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-7

Project priority matrix

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-8

4

Step 3: Creating the work breakdown structure • Work breakdown structure (WBS) – A hierarchical outline (map) that identifies the products and work elements involved in a project – Defines the relationship of the final deliverable (the project) to its subdeliverables and in turn their relationships to work packages – Best suited for design and build projects that have tangible outcomes rather than processoriented projects

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-9

Identifying relationships

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-10

5

Hierarchical breakdown of the WBS

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-11

How WBS helps the project manager •

WBS: – facilitates evaluation of cost, time and technical performance of the organisation on a project – provides management with information appropriate to each organisational level – helps in the development of the organisation breakdown structure (OBS), which assigns project responsibilities to organisational units and individuals – helps manage plan, schedule and budget – defines communication channels and assists in coordinating the various project elements

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-12

6

Work breakdown structure

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-13

Work packages • A work package is the lowest level of the WBS. It is outputoriented in that it: 1. defines work (what) 2. identifies time to complete a work package (how long) 3. identifies a time-phased budget to complete a work package (cost) 4. identifies resources needed to complete a work package (how much) 5. identifies a person responsible for units of work (who) 6. identifies monitoring points or milestones for measuring success (how well)

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-14

7

Step 4: Integrating the WBS with the organisation •

Organisational breakdown structure (OBS) depicts how the company is organised to discharge its work responsibility for a project: – Provides a framework to summarise organisation work unit performance – Identifies organisation units responsible for work packages – Ties the organisational units to cost control accounts

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-15

Integration of WBS and OBS

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-16

8

Step 5: Coding the WBS for the information system • WBS coding system – Defines:  levels and elements of the WBS  organisation elements  work packages  budget and cost information – Allows reports to be consolidated at any level in the organisation structure

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-17

Example: WBS Coding Note the project identification is 1.0. Each successive indention represents a lower element or work package. The cost account is the focal point.

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-18

9

Responsibility matrices •

Responsibility matrix (RM) – Also called a linear responsibility chart – Summarises the tasks to be accomplished and who is responsible for what on the project:  lists project activities and participants  clarifies critical interfaces between units and individuals that need coordination  provides a means for all participants to view their responsibilities and agree on their assignments  clarifies the extent or type of authority that can be exercised by each participant

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-19

Example: Responsibility matrix for a market research project

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-20

10

Example: Responsibility matrix for a conveyor belt project

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-21

Project communication plan • What information needs to be collected and when? • Who will receive the information? • What methods will be used to gather and store information? • What are the limits, if any, on who has access to certain kinds of information?

• When will the information be communicated? • How will it be communicated?

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-22

11

Developing a communication plan 1. Stakeholder analysis 2. Information needs 3. Sources of information 4. Dissemination modes 5. Responsibility and timing

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-23

Example: Project communication plan

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-24

12

Information needs • Project status reports • Deliverable issues • Changes in scope • Team status meetings • Gating decisions • Accepted request changes • Action items • Milestone reports

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

4-25

13

Larson Project Management Chapter 5 Estimating project times and costs

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

5-1

1–1

Estimating projects •

Estimating is: – the process of forecasting or approximating the time and cost of completing project deliverables – the task of balancing expectations of stakeholders and need for control while the project is implemented

•

Types of estimates – Top-down (macro) estimates: analogy, group consensus, or mathematical relationships – Bottom-up (micro) estimates: estimates of elements of the work breakdown structure

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

5-2

1

Why estimating time and cost are important • To support good decisions • To schedule work • To determine how long the project should take and its cost • To determine whether the project is worth doing • To develop cash flow needs • To determine how well the project is progressing • To develop time-phased budgets and establish the project baseline Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

5-3

Factors influencing the quality of estimates Planning horizon Other (nonproject) factors

Project duration

Quality of Estimates Organisation culture

People

Padding estimates

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

Project structure and organisation

5-4

2

Estimating guidelines for times, costs and resources 1. Have people familiar with the tasks make the estimate. 2. Use several people to make estimates. 3. Base estimates on normal conditions, efficient methods and a normal level of resources. 4. Use consistent time units in estimating task times. 5. Treat each task as independent, don’t aggregate. 6. Don’t make allowances for contingencies. 7. Adding a risk assessment helps avoid surprises to stakeholders.

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

5-5

Top-down vs bottom-up estimating •

Top-down estimates: – are usually derived from someone who uses experience and/or information to determine the project duration and total cost – are made by top managers who have little knowledge of the processes used to complete the project

•

Bottom-up approach – can serve as a check on cost elements in the WBS by rolling up the work packages and associated cost accounts to major deliverables at the work package level

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

5-6

3

Conditions for selecting estimating method Top-down estimates

Bottom-up estimations

Strategic decision making

Cost and time important

High uncertainty

Fixed-price contract

Internal, small project

Customer wants details

Unstable scope

Copyright © 2014 McGraw-Hill Education (Australia) Pty Ltd Larson, Project Management

5-7

Estimating projects: preferred approach • Make rough top-down estimates. • Develop the WBS/OBS. • Make bottom-up ...