Successful Project Management
Brain
Storming
• What will be the constraint of a
project?
• Think of the possible problems
that may occurs
• How to start a successful
project
• In your opinion, what is a
proposal?
• What is a good proposal?
2001年編寫(引用沈肇基老師講義)
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1
The triple constraint
Defining The Goals of A Project
How to start
Successful project
2001年編寫(引用沈肇基老師講義)
Negotiations and
contracts
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The Triple Constraint
Successful project management
means
accomplishing
the
performance specifications on or
before the time limit and within
the budgeted cost.
Performance
Specification
Time
Cost
Budget
2001年編寫(引用沈肇基老師講義)
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The Triple Constraint-- Performance problems
Poor communication between the
contractor and customer.
Ambiguous communication between
the contractor (boss) and the customer
(project team) may lead to a quality
disappointment.
Technical
difficulty
optimistic assumptions.
from
too
Poor design or make mistakes in
executing contract performance.
CLARIFY UNCLEAR SPECIFICATIONS
2001年編寫(引用沈肇基老師講義)
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The Triple Constraint --Time problems
“Better” is the enemy of “good enough”.
Resources are not available when required.
Those assigned to it are not interested in their
tasks.
Performance specification is raised.
Triple constraint Outcome
$
better
Budget
worse
Early
2001年編寫(引用沈肇基老師講義)
Performance
specification
Schedule
Late
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Time
5
The Triple Constraint Cost problems
Schedule delay or sleep.
Resources are not being used as efficiently as
plan.
“Liars Contest” during contract negotiation
which causes a cost overrun.
Initial cost estimates are simply too optimistic.
Inadequate cost consciousness. (沒有成本概
念).
Funding may not occur according to plan.
TIME IS MONEY!!!
2001年編寫(引用沈肇基老師講義)
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6
How to Start
Successful Projects
define
complete
plan/replan
lead
monitor
(metrics)
•Proposals bridge the defining and planning activities on projects.
•A good proposal includes a thorough plan for work performance that
embodies the triple constraint.
2001年編寫(引用沈肇基老師講義)
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STRATEGIC
ISSUES
PLANNING
ACTIVITIES
DEFINING
PROJECT
The basis of a successful
strategy is to filter out
losing projects
THE PROPOSAL PROCESS
2001年編寫(引用沈肇基老師講義)
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Proposal
effort
Company
long-tem goals
STRATEGIC
ISSUES
Current and near-term
resources
requirement
Project
value
Response
ability
Strategic
Framework
Winning the
completion
Bid / No Bid
Decision
2001年編寫(引用沈肇基老師講義)
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STRATEGIC CONCERNS
The basis of a successful strategy is to filter
out losing projects.
 Reject consumer project efforts in an industrial product company.
 Reject a fixed price contract for a technical development,
scientific advance, invention, or something not previously
accomplished.
In summary, avoid projects that are
inconsistent with your organization’s long-term
goals or current and near-term resources, such
that
 Unlikely to win the proposal competition.
 Unlikely to satisfy the intended triple constraint.
 Insignificant or irrelevant.
2001年編寫(引用沈肇基老師講義)
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Project Value
The Requirement
Whether there is a real requirement.
Whether the funds are really available.
 Market request.
 Apply important new technology.
 Enhance the organization’s reputation.
 Commercial new product.
Accept future financial commitments
for new capital or facility investments.
BID/NO BID DECISISONS
Response Ability
Winning the Competition
First to prepare a winning proposal and
second to perform the proposed work. If
some capabilities are not actually
present. There must be a viable plan to
make them available when they are
needed.
Is there advance information about
the project available to it?
Concern the customer. Is it an individual or a commercial organization? (internal or external)
2001年編寫(引用沈肇基老師講義)
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Proposal Process
1. Authorization
2. Theme Fixation
3. SOW
4. Plan
5. Adjustments
6. Approval
7. Submission
8. Post-submission
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THE PROPOSAL PROCESS
1.Authorization.
authorization
Theme
fixation
SOW
2.Selection
theme.
of
a
dominant
3.Preparation of the statement
of work.
approval
4.Development a plan to satisfy
the triple constraint.
5.Adjustment
to
inconsistencies
inadequacies.
remove
and
6.Approval.
plan
adjustments
submission
Post-submission
7.Submission.
8.Postsubmission
follow-up,
including presentations and
contract negotiations.
2001年編寫(引用沈肇基老師講義)
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The Details of Proposal Process
1. Authorization
2. Theme Fixation
• Authorization form: estimated schedule, funding, customer,
estimated bid price, competition, proposal plan, approvals
• This proposal process frequently Starts before an
RFP.(preproposal)
• A proposal itself can be considered a project with a triple
constraint.
Customer’s
Contractor’s
3. SOW
goals
goals
• Content
It should identify measurable tangible, and verifiable
acceptance criteria.
• Clarification: After it is drafted, the SOW should be
reviewed with the customer prior to further work on the
proposal. No too much “gold plating”.
5. Adjustments
• Someone discovers that two departments contributing to the
proposal have duplicated their efforts or have made
differing assumptions about some significant item.
• Someone discovers new information or corrects some
oversight.
• Understand the subtle different minds of customers and
either harmonize them of deduce who has the most
influence.
• Working with the customer (when this is permitted).
• If everyone in your organization understands what the
theme is, your proposal should be acceptable to your
prospective customer.
4. Plan
• The act of writing the proposal forces the organization
to think through and attempt to simulate the entire
project.
• Simulation: To identify any potential problem areas in
the prospective system before building it.
• The triple Constraint: 1. Use Work Breakdown
Structure (WBS) to describe your approach to the
performance dimension. 2. Use schedule chart, in
which each activity corresponds to a WBS element, to
describe your approach to the time dimension. 3. Use a
complete cost breakdown for each activity to describe
your approach to the money dimension.
• Checklists (ref:pp.287-289) HOMEWORK!! Prepare
your own list for your project.
6. Approval Form: >schedule for job >title >customer
>Total bid price >cost >fee >summary SOW >submitted
package >summary of risk >key people promised > financial 7. Submission
• Watch your data
commitment requited >warranty
• Check requested format in RFP.
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8. Post-submission
Presentation and
Negotiation
14
Proposal Content
EXECUTIVE
SUMMARY
MAIN PROPOSAL
• TECHNICAL
• MANAGEMENT
APPENDICES
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CPIF→Cost Plus Incentive Fee :
Contractual Form
FFP→Firm Fixed Price:
The price and fee are determined and do not
depend on cost.
FP→Fixed Price: Same as FFP.
CPFF→Cost Plus Fixed Fee:
The customer agrees to reimburse the
contractor’s actual costs, regardless of amount,
and pay a negotiated fixed fee independent of
the actual costs.
Similar to CPFF except the fee is not preset or fixed
but rather depends on some specified incentive.
T and M>>Time and Material :
The customer agrees to pay the contractor for all
time and material used on the project, including a
fee as a percentage of all project costs.
Customer
Financial
Risk
Contractor
Fixed price
Cost reimbursable
NEGOTIATIONS AND CONTRACTS
Contract
Negotiation
Customer Organization
Management
Contracting or
Purchasing
Project
Manager
Support
Team
2001年編寫(引用沈肇基老師講義)
Contract
Project
Team
Contractor Organization
Management
Contracts
Manager or
Project
Marketing
Manager
Project
Team
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Support
Team
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Legal Aspects: Contract Items-1
Customer’s name and address and specification of
authorized signatures.
Contractor’s name and address and specification of
authorized signatures.
Statement of supplies (items), services, and prices
(i.e.,SOW).
Preservation, packaging, and packing instructions.
Delivery or performance period.
Inspection and acceptance terms.
2001年編寫(引用沈肇基老師講義)
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Legal Aspects: Contract Items-2
Contract administration data.
Special provisions (funding limitations or customer furnished
equipment).
General provisions (reference to federal procurement
regulations, overtime payment terms, or similar) such that,
for example manufacturers have been obligated to pay
criminal and civil penalties for violations of federal
regulations.
Patent terms, conditions, and ownership rights (if not covered
in items 8 and 9).
List of required documentation.
2001年編寫(引用沈肇基老師講義)
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