10 Mar org structure, process groups, project charter

BA 246: Project Management

What is a Project?

“A temporary endeavor undertaken to create a unique product or service”

Project Management Institute, 2000

Characteristics of Projects

! Temporary (with beginning and specific due date)

! Unique Product, Service, or Result

Operations vs. Projects

! Operational Work ! Ongoing work to support the business and

systems of the organization

! Project Work ! Ends when the project is closed


!  Business Development Departments

Program Management

!  Group of related projects

!  Helps coordinate the management of projects

!  Can achieve decreased risk, economies of scale, and improved management

!  Done only when the program approach adds value

Program Management

Example

Example

!  Supply Chain Management Restructuring Program

Portfolio Management

!  Group of programs, individual projects, and other related operational work

!  To achieve a specific strategic business goal (but may not be related)

!  Helps optimize the use of resources and reduces risk

Portfolio Management

What is a successful project?

Triple Constraint

! Time – Schedule

! Cost – Budget, Resources

! Performance – Scope, Quality, Risk

Triple Constraint

! Time

! Cost

! Performance

What is a successful project?

!  The definition of success is evolving

!  Projects must deliver what they set out to do — the expected benefits

Organizational Structure

! Where to go for help with resources?

! How to handle communications?

Organizational Structure

! Functional

! Projectized

! Matrix

Functional

! Grouped by areas of specialization

! Projects occur within a single department

! Members complete project work on top of normal departmental work

! “Silo”

Functional

Projectized

! Grouped by project

! Team members report to a Project Manager

! When the project is over, they do not have a department to go back to

! “No home”

Projectized

Matrix

! Maximizes strength of both Functional and Projectized structures

! Team members report to the Project Manager and the Functional Manager

! Members complete project work on top of normal departmental work

! “Two bosses”

Matrix (Balanced)

Strong Matrix

Power rests with the Project Manager!

Weak Matrix

Power rests with the Functional Manager! Project Manager is Coordinator or Expediter

Weak Matrix

Project Manager cannot or is limited to make or enforce decisions

Which is the best Organizational Structure?

What is your Organizational Structure?

Project Management Process Groups

!  Initiating

! Planning

! Executing

! Monitoring and Controlling

! Closing

Describe what you need to do to manage the project


!  Initiating (Start)

! Planning (Plan)

! Executing (Do)

! Monitoring and Controlling (Check and Act)

! Closing (End)

Initiating (Start)

! As Project Manager ! Determine whether business case can be met

! High-level planning to verify that the project can be completed within the given constraints

! Project is officially approved

Planning (Plan)

! As Project Manager ! Detailed plan on how to Execute, Monitor &

Control, and Close the project

Executing (Do)

! As Project Manager ! Complete work according to the processes and

procedures detailed in the Project Management Plan

! Focus on managing people, following processes, and communicating according to plan

Monitoring and Controlling (Check)

! As Project Manager ! While the work is being done, feeds the work

results or work performance data vs. the Project Management Plan

Monitoring and Controlling (Act)

!  If there are variances from the Plan, evaluate impact on the project !  If changes do not affect the baseline !

Executing !  If changes require an analysis of whether the

project should continue at all ! Initiating

Monitoring and Controlling

!  Scope

!  Time

!  Cost

!  Quality

!  Communications

!  Risk

!  Procurement

!  Stakeholder

Closing (End)

!  When the work is done or the project is terminated

!  Measure Customer Satisfaction


!  All of the work of the project must be monitored and controlled

!  Project will evolve as each item is planned and much of the earlier planning work will need to be modified

!  Do the Project Management process groups occur sequentially?

No, they all overlap

Dumb Phones

Dumb Phones ! 17 years since Nokia released its last dumb

phone, the 3310

! The company has now returned to the market with a new version

! Aimed at consumers who mainly want to use their mobile phones for basic stuff, like calling and texting people, and don’t want to pay as much to buy one

Dumb Phones ! The average global retail price will be £49,

compared to £599 for an iPhone 7

! Long battery life

! Niche as a back up or emergency phone and/or replace the home landline

How will you Initiate this project?

Develop Project Charter

!  Planning the project at a high level to assess whether it is feasible within the given constraints

!  Meet with key stakeholders

!  Define project objectives, constraints, and success criteria

!  Document risk

!  Does your organization require a signed Project Charter?

Project Charter Contents

!  Project Title and Description (What is the project?)

!  Project Manager Assigned and Authority Level (Who is give authority to lead the project, and can he/she determine, manage, and approve changes to budget, schedule, staffing, etc?)

!  Business Case (Why is the project being done? On what financial or other basis can we justify doing this project? Describe the project purpose and justification)


!  Resource Pre-assigned (How many or which resources will be provided?)

!  Stakeholders (Who will affect or be affected by the project, as known to date?)

!  Stakeholder Requirements as Known (Requirements related to both project and product scope)

!  Product Description/Deliverables (What specific product deliverables are wanted, and what will be the end result of the project?)


!  Assumptions (What is believed to be true or reliable in the situation? What do we believe to be the case but do not have proof or data for?)

!  Constraints (What factors may limit our ability to delivery? What boundaries or parameters will the project have to function within?)

!  Measurable Project Objectives (How does the project tie into the organization’s strategic goals? What project objectives support those goals? The objectives need to be measurable and will depend on the defined priority of the project constraints)


!  Project Approval Requirements (What items need to be approved for the project, and who will have sign off? What designates success?)

!  High-Level Project Risks (Potential threats and opportunities for the project)

!  Project Sponsors Authorizing This Project (Signed!)

Signed Project Charter

!  Formally recognizes the existence of the project

!  Gives the project manager authority to spend money and commit corporate resources to the projects

Homework

!  Article: Cross-cultural PM for international construction in China

!  Think of a project for a company that you have worked with – prepare to sell this as your Final Team Project

10 Mar org structure, process groups, project charter

Business

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