Project Management

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Introduction
Project Management
Projects
A unique process, consisting of a set of
coordinated and controlled activities with
start and finish dates, undertaken to achieve
an objective conforming to specific
requirements including constraints of time,
cost and resources.
(1)
(2)
(3)
unique
specific objectives (the project product)
constraints (especially: limited time frame)
Notes
1. Projects may form parts of a larger project
2. Project objectives and scope are updated and defined
progressively as the project proceeds.
3. Project product: it is defined in the project scope. One
or more units, tangible or intangible.
4. The project’s organisation is normally temporary.
5. Complexity and interactions among project activities.
Projects are connected to
change management
Usual
business
of the firm
Projects
Routines &
regular tasks
Changes
(uncertainty)
Common project elements
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Product specification
Project plan
Time frame
Budget
Cost plan
Statemet of quality required
Identification of areas of uncertainty
Risk management:
evaluation & responses
Collecting information
• Real time
• Facilities needed to analyse the collected
data
The project triangle
+ customer focus
Project management
• Project management is the discipline of
planning, organizing, and managing
resources to bring about the successful
completion of specific project goals and
objectives.
• It is possible (and sometimes very
efficient) to manage non-project processes
as projects.
The project cycle
4 phases:
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Conception (definition)
Development (planning)
Realisation (implementation)
Termination (closing)
Conception phase
• Idea of a new project
– Internal
– External
• Desirability
(Does it fit the strategy and the mission?)
• Feasibility (costs, resources, schedule)
• Documentation: project (work) statement
• End of phase: formal authorization
Conception phase:
Feasibility evalutaion
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Capability to deliver the project product in time
Final price of the product
Project budget
Specification of the product
Ability to support the capital outlay
Availability of the items and services needed
Acceptability of geographical and ecological
Acceptability of any further contract conditions
Development phase
• Appointment of the project manager and
the project management team. From now
on the project manager is in control.
• A first phase Project Management Plan
(PMP). It contains all plans for the project,
but it is continuously changing.
Realisation phase
• Turning the plans into reality.
• The project development and an
appropriate reporting (monitoring) system
are running simultaneously with the
implementation process. A project log is
needed.
The project termination
• Closing the project and its activities
• Knowledge management tasks:
– Success of methods used
– Project team performence
– Reliability of suppliers
• Disposing the residual capital and
equipment.
Project management maturity
• Project management development is an
evolutionary process: every firm goes
through nearly the same, step-by-step
development process in their use of PM
techniques.
• Different organizations are on different
levels of sophistication in their best
practices for managing projects.
PMP (Project Management
Professional) sample questions
(Pinto 2010)
PMP sample questions
(Pinto 2010)
Discussion questions
Simplified case study
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There is a family owned manufacturing company that produces spare parts for
motorcycles in great volumes and built customised motorcycles, too, for order
only, in a small number per year.
Some of the produced spare parts are manufactured in nearly the same form for
years and no significant change is estimated in the future.
However, there are some goods, that are demanded only for shorter periods. In
these cases the firm configures the manufacturing equipment, creates the
wanted volume and disassembel the machinery after the market demand
(and so the profitability) drops below a given level.
The custombike building is organized in a form of job shops, because these are
built one by one.
The company has now the organizational design of a typical small enterprise
with only one managerial unit for every function and problem. Because of the
increasing production volumes (and revenues) they need to change the structure
sooner or later. The plan is to separate the sparepart-making activities from the
custombike building via creating two divisions with autonomous divisional heads.
It is a great reorganization with many possible difficulties, that is why the owners
hesitate when to start it.
Are there a (reasonal) place for projects and project management in this
company?
Case studies
• http://oktato.econ.unideb.hu/kunandras/BA
INMBA/SlidesPM2013/Cases_1.1_1.2.doc
Thanks for the attention!
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