Project Management
Lecture April 11, 2013
1
Overview
• Repetition
- Cost Estimation
- Project Organization
• Project planning IV
- Project Organization II
- Quality Management
- People in Projects
• Summary
2
Dependencies in Project Planning
Project task
Structuring the
task
Quality
Structuring the
process
Resources
Capacities
Dates
Team
profit
Cost
Information
Benefit
Source: Litke, H.-D.: Projektmanagement. Hanser 1995
3
Principles of Cost Estimation in Projects
Top-down (global) estimation methods
• For a fast and easy, approximate estimation of projects cost.
• Uses parameters, key data (e.g. per volume)
Bottom-up (analytical, AP-based) estimation methods
Type of
cost
Work
packages
Allocation
• Basis for detailed project cost planning
• Basis for cost based project controlling
Work package
costs
4
Σ
Project
costs (PC)
PC over
time
Definition: „Project Organization“
“The term project organization refers to the organization,
which is assigned with a project and its integration in the
existing organization of the company.“
(Kummer: Projektmanagement. 1986. S. 41)
External
Project
Organization
Internal
Project
Organization
5
People in Projects
Expert committee
Steering committee
Project leader
Special
functions
Project team
6
Overview
• Repetition
- Cost Estimation
- Project Organization
• Project planning IV
- Project Organization II
- Quality Management
- People in Projects
• Summary
7
Overview of the Project and Organization Structures
Board of
Management
Department A
• Pure project organization
Department B
Department C
Projekt B
Projekt A
PM B
PM A
Board of
Management
• Influence project organization
PM
Staff
Department A Department B Department C
• Matrix project organization
Executive board
Department A
Department B
Department C
Project 1
Project
related
directives
Project 2
Function related directives
8
Matrix Project Organization (1)
Executive board
Department A
Department B
Department C
Project 1
Project
related
directives
Project 2
Function related directives
Source: Litke, H.-D.: Projektmanagement. Hanser 1995
9
Matrix Project Organization (2)
• Main principle: Combination of a vertical (functional) and a
horizontal (project oriented) organization
• Project executed by the departments as a service provider
for the project (focus on execution)
• Project leader coordinates and is responsible for the project
as a whole (focus on project targets, planning and
controlling)
• More than one project leader may use same resources
• Project members are assigned to department manager +
project leader
10
Competencies in a Matrix Project Organization
Project
manager
Department
manager
What
Instruction
Codetermination
When
instruction
Codetermination
Who
Arrangement
Arrangement
how
Codetermination
Instruction
Where
Arrangement
Arrangement
Source: Litke, H.-D.: Projektmanagement. Hanser 1995
11
Pros and Cons of the Matrix Project Organization
+ balanced consideration of project dimension and professional
dimension
+ Goal oriented coordination of different interests
+ High identification of all employees with the project
+ Simultaneous technical source for project team members
- Potential to conflict since different interest of line and project
- Cut of the authority of the line => danger of arguments concerning
competencies and passive resistance
- Enormous coordination effort between line and project management
- Difficult situation for employees (“servant of two masters”)
12
Advantages of a Functional Home Base
• A flexible deployment of staff is possible
• Continuity of further training in expertise is rather assured
• Special knowledge and specific experience can be transferred
from one project to the next
• Those employees, which are not completely moved out of
their original organization feel more comfortable and more
secure.
Source: Litke, H.-D.: Projektmanagement. Hanser 1995
13
Matrix Project Organization
Matrix project organization requires
• a highly developed understanding of organization and
leadership
• a project leader, who is accepted in the lines
• a “politic” clever acting project leader
• Highly qualified employees and high requirements on the
willingness to communicate and to move on information
“Despite all those objections is the matrix project organization
in many cases the most effective, most profitable one and in
consideration of the scarce resources, the only enforceable
solution.”
(Litke 1995, S.81)
14
Choice of the Adequate Organizational Structure
Project organization and project management can only be
successful, if the existing management system and the project
organization match up.
The choice of the project organization depends on:
-
structure of the existing organization
size and duration of the project
its importance for business policy reasons
necessity of the interdisciplinary cooperation of different areas
project risk
availability of resources
experience in project organizations
number/ frequency of projects in one area
15
Reasons for a Change in Project Organization During a
Project
• Different emphases and people in different phases
• Changes of objectives and contents as the project runs
• Exchange of important staff members
16
Example for a Change in Project Organization
Phase
Profile of
project organization
Reasoning
Definition
Influenceproject organization
Creativity and brainstorming
come to the fore. Performance
of the project uncertain.
Draft
Matrixproject organization
High interdisciplinary
cooperation needed.
Realization
pure
project organization
Project has high importance
for business policy reasons.
Line organization
Conceptual design largely
finished, no need anymore
for cooperation
with other departments.
Trial
Source: Litke, H.-D.: Projektmanagement. Hanser 1995
17
Quality Issues in
Project Management
18
Dependencies in Project Planning
Project task
Structuring the
task
Quality
Structuring the
process
Resources
Capacities
Schedule
Team
profit
Cost
Information
Benefit
Source: Litke, H.-D.: Projektmanagement. Hanser 1995
19
Quality as Central Key Figure in the Project
Quality
Project
Costs
Time
20
Definition of “Quality”
DIN 55350, part11, S.2:
“Quality it the entirety of attributes and characteristic values
of a unit concerning it’s eligibility to achieve defined and
required demands.”
en.wikipedia.org/wiki/Quality (accessed 02.05.07)
“Quality refers to the inherent or distinctive characteristics or
properties of a person, object, process or other thing. Such
characteristics or properties may set a person or thing apart
from other persons or things, or may denote some degree of
achievement or excellence. When used in relation to people,
the term may also signify a personal character or trait.”
21
Quality Management
• Due to the uniqueness of each project and therefore
new/different quality requirements have to be defined
• Observation of the requirements is the responsibility of
each team member...
• ... but first and foremost the responsibility of the project
manager
• Quality management is an important task in project
management
22
Quality Management
Strategic management concept
which aligns the organization with all-embracing and consistent
quality.
Collaborative quality awareness
Realization of an optimal product quality through an appropriate
quality of the overall process
Unconditional orientation
to the expectation of all stakeholders: costumers, employees,
owners, suppliers and society, etc. and in all ranks:
-
Product and process quality
Service quality
Innovation quality
Environmental quality
social quality
...
23
Contents of Quality Management
Quality
management
Quality planning
Performance
planning
Set up
quality
characteristics
To set up
arrangements
to reach the
quality
characteristics
Quality control
Performance
control
Quality test
Performance
correction
To set up
conduction and
affectivity of
the quality
characteristics
24
Inspection
Test
To bring
Verification of Check of
about
documents
code or
amendments
prototype
of product
quality
Overview
Project planning IV
• Repetition
• Project Organization part 2
• Quality in Projects
• People in Projects
• Summary
25
Personnel Planning
26
Dependencies in Project Planning
Project task
Structuring the
task
Quality
Structuring the
process
Resources
Capacities
Schedule
Team
profit
Cost
Information
Benefit
Source: Litke, H.-D.: Projektmanagement. Hanser 1995
27
Acquiring Sufficient Resources
• Resources initially budgeted for projects are frequently
inadequate
- Sometimes resource trade-offs are required
- Subcontracting is an option
- Project and functional managers perceive availability of resources to
be strictly limited
- Competition for resources CAN turn into “win-lose” propositions
between project and functional managers
28
Source: Meredith/Mantel Project Management 2005
Acquiring Inspiring Personnel
A major problem for the PM is that most people required for a
project must be “borrowed”
- At times, functional managers may become jealous if they perceive a
project as more glamorous than their own functional area
- Typically, the functional manager retains control of personnel
evaluation, salary, and promotion for those people lent out to projects
- Because the functional manager controls pay and promotion, the PM
cannot promise much beyond the challenge of the work itself
- Violation of “Unity of Command” principle
Source: Meredith/Mantel Project Management 2005
29
Personnel Planning
The planning of personnel contains all reflections which
are related to the concrete assignment of employees to
the project team.
30
Contents of the Personnel Planning I
Determination of the staff requirement
• Required functions
• Required capacity
• Qualification profile
Recruitment of employees
• recruitments of qualified internal employees (“Battle for
Talents”)
• Possibly selection of employees
• Possibly external recruitment of employees
Agreement of the assignment to a project
• part-time / full-time assignment
• Organizational form (pure project organization, influence
project organization, matrix project organization)
• Subordination
• Activity after project end
31
Contents of the Personnel Planning II
Assignment of the employees
• To be carried out in oral and written form
• List of activities should contain:
-
The
The
The
The
task to be solved
available capacities
planned costs
closing date to be obtained
Optimal condition of employment and infrastructure
• Work station
• PC, development and test tools
• Methodological instruments
• Further education (related to project task)
• Career planning
• Supervision / Coaching of employees
32
The Project Manager
33
Significance of a PM
•Success and Failure correspond strongly with the
type and personality of the PM
•Selection of the “right” PM is essential
•Management support for PM
Requirements
-
Methodological Competence
Social Competence
Strong Leadership abilities
Motivator
Trainer
Psychologist
Conflict Manager
34
PM Career Model
Source: http://www.project-management-knowhow.com/project_management_career_model.html
35
PM Career at Siemens
Quelle: PM@Siemens
PM-Guide
36
Project Start
37
Phase Models
Project
Initiation
Project
Planning
Project
Start
Project
Implementation
Feedback Loops
Project
Completion
38
What is the Project Start?
• Define the project start
• Publish and discuss project plan (buy in)
• Delegate tasks to team members
• Define values for the
project team (Cultural issues)
39
Project Start Often Unclear
Reality shows that …
• Projects are started spontaneously
• projects are not communicated internally
• project plan is not finished
• project organization is not defined
• no resources
• no scheduling
 Basics must be there
 Start must be officially communicated
40
Check List for the Project Start I
 Clearly defined written task? Clear project goals?
 Work packages known?
 Process clear? Schedule incl. milestones defined?
 Capacities and resources available?
 Costs and budget realistic?
 Organization defined and communicated?
 Personnel recruited und instructed?
 Infrastructure access?
 Quality management in place?
41
Check List for the Project Start II
 Risk and mitigation strategy
 Milestone decisions for steering committee defined
 Instruments in place (documentation, minutes, meetings,
etc.)?
42
First Meeting I
Participants
• Steering Committee (at least one member)
• Whole project team
Goal
• Manifest official start of the project
• Inform team about project plan
• Get full commitment for PP
• Mutual introduction and building of trust
43
First Meeting II
Content
• Repeat goals and task
• Present PP and discuss and decide on it.
• Discuss open/critical points. Don’t try to solve them!
• Identify tasks and work packages for first phase of project
• “Soft-Topics”
• Celebrate project start!
44
Summary and Preparation for the Next Session
• Project Organization
• Quality in projects
• Project start
Preparation
• Post processing of today's lecture
45