Advanced project management ppts

Advanced Project Management


Level 6


Session 1

Managing and Leading Projects


Learning Outcomes

At the end of this session candidates will be able to:

Explore the various definitions and characteristics of a project

Analyse the difference between leadership and management relating to projects

Explore why organisations in different sectors need to engage in projects and consider different types of project

Evaluate the importance and relationship of project and people management in achieving project goals.

Demonstrate an understanding of external business environmental factors and how they may affect a project.

Critically evaluate the concept of power and influence. Identify the key stakeholders for a purchasing and

logistics project and how their power and influence change throughout the life of the project.


Definitions of Project Management

‘… A set of activities with a defined start point and a defined end state, which pursues a defined goal and uses a defined set of resources.’ (Slack et al)

“... A temporary endeavour undertaken to create a unique product or service”. (US PMI)

“... The process by which projects are defined, monitored, controlled & delivered.....desired outcome......bring about change” (APM)


Definitions Cips Study Guide “a group of activities that have to be

performed in a logical sequence to meet pre-set objectives outlined by client”

Meredith & Mantel “a specific, finite task to be

accomplished......project seen as a unit....characteristics..importance, performance, lifecycle, interdependencies, uniqueness, resources and conflict”

What are key features? Group exercise


Distinctions between Leadership and Management“Leadership is the lifting of a person’s vision

to higher sights, the raising of performance to a higher standard, the building of personality beyond its normal limitations”.

“Nothing better prepares the ground for such leadership than a spirit of management that confirms in the day-to-day practices of the organisation strict principles of conduct and responsibility, high standards of performance and respect for the individual and his work.”

Drucker; The Practice of Management


What do Managers Do?

Plan Organise Coordinate Control Lead

Fayol

Is this mainly a shorter term focus?

Establishing overall purpose or policy

Forecasting and planning

Organising and allocating work

Giving instructions Checking

performance Coordinating the

work of othersBuchanan


What do Leaders Do?

Enable people and groups to achieve their objectives

Set and communicate objectives

Monitor performance and give feedback

Establish basic values

Clarify and solve problems for others

Organise resources

Longer term?

Administer rewards and punishments

Provide information, advice and expertise

Provide social and emotional support

Make decisions on behalf of others

Represent the group to others

Arbitrate in disputes Act as a father

figure Become a scapegoat


Leader or Manager?

Group exercise What do you see as the key

differences between management & leadership?

Which skills are more important in project management?

Recap Kotter p 11 – effective v efficient?

Also Mintzberg p 12

1


Reasons that Organisations Undertake Projects

Change in: The external environment Markets and customer needs Technology Products and services Processes

Globalisation Impatient customers Increasing demand for unique and customised

solutions Change within organisations initiated by

senior managers Paired ex – list examples for each point above

– own org. or alternative


Hard or Soft Projects

Hard – normally refer to tangible, measurable activities and processes

Soft – human factors and processes – eg communication, behavioural change and acceptance

Can you easily distinguish simply between these two aspects of project work

Is Millau Bridge a hard project?


‘Hard’ vs ‘Soft’ Projects

Product development – p8 Process development – eg

BPR Re-design/modification of

products and processes Technology development Installation of new IT

systems example p9 – London Ambulance Service

Site relocation/closure Culture change Introduction of a new

organisational structure A new appraisal scheme

How would you categorise each of these?

Lyson’s categorisation of projects:

Manufacturing projects Construction projects Management projects Research projects

Too simplistic?


Constituents of the Project Context

PEST/SLEPT factors

Porters 5 Forces analysis

Stakeholders Resource

constraints Time constraints Overall strategy of

the organisationCIPS syllabus

Complexity Completeness Competitiveness Customer focus

Maylor


Common Stakeholder Expectations

Fit for purpose Aesthetically pleasing Free from defects Delivered on time Value for money Reasonable running costs Satisfactory reliability/durability Supported by worthwhile guarantees Which stakeholders do each of

above relate to?


Stakeholder Power/Interest Matrix

Keep satisfied Key players

Keep informedLow

Pow

er

Low HighLevel of interest

Minimal effort

Hig

h

Source: Mendelow, 1991

Stakeholders are likely to

move between segments

during the life of a project


How do you keep stakeholders satisfied? Satisfaction = perception –

expectation Manage their expectations Re projects – may be necessary to

“sell” the final outcome Ensure know actual requirements –

don`t over-promise Keep advised of progress

Spec exam paper – Sportsco Q 1


Session 2

Managing and Leading Projects


Learning Outcomes


Evaluate and explain the idea of the project as a conversion or transformation process.

Explore the concept of variety and volume in defining the nature of an operation and evaluate its application to project management.

Describe the role of a project selection


A Project is a Conversion Process

The project(transformation

process)

The project(transformation

process)

Inputresources

Inputresources

MaterialsInformationCustomers Output

(product/service)

Customers

Input trans-forming

resources

FacilitiesStaff


Conversion Process

Inputs Transformed into Outputs

Same as a process?

What other input resources do you need?

See p 30


Projects as a Technology

Volume

Vari

ety

HighLow

Low

Hig

h

Projects

Processplant

Smallbatch

Largebatch


The Project Model

ProjectInput:Want/need

Output:satisfied need

Mechanisms:•people•knowledge & expertise•capital•tools & techniques•technology

Constraints:•Financial•Legal•Ethical•Environmental•Logic•Activation•Time •Quality•Indirect effects


Project Constraints

Group exercise

Discuss examples and give reasons why Maylor lists these factors - in previous slide -as constraints in his ICOM model


Project Portfolio Process How many projects can an

organisation handle?

Identify projects that satisfy strategic needs They support multiple goals – feasible? They drive organisational improvement –

why might these take priority? They enhance/enable ‘key areas’ – how

determine?


Portfolio Process

Prioritise candidate projects Limit active projects to a manageable

level – do you always have necessary resources?

Identify risk-intensive efforts – why? Balance short-, medium- and long-term

returns – why is this important?

Prevent projects getting in the back door – how/why might this happen?

Meredith & Mantel, 2005


Project Selection Factors - Issues to Consider

Operations Interruptions, learning, process

Marketing Customer management issues

Financial Return on investment – what is acceptable?

Personnel Skills and training, working conditions –

what impact on employee motivation? Administrative

Regulatory standards, ‘strategic fit’ – with what?



Strategic Success Factors

Project mission – clearly defined and agreed objectives

Top management support – top managers must get behind the project and make clear to all personnel at the outset their support

Project action plan – showing details of the required steps and resource requirements in the implementation process

Group ex – how would getting each of these factors wrong cause problems for an organisation? Can you think of any project failures attributable to any of these factors?



What Projects Have in Common

An objective or objectives, usually defined in terms of quality, time and cost – the “iron triangle”

Each is unique – a ‘one-off’ – always? Of a temporary nature – what is temporary? A degree of complexity, stemming from

multiple tasks and participants – often the key challenge

A degree of uncertainty, often technical

NB. A ‘programme’ implies greater longevity or continuity

Spec Exam paper Q 3


Session 3

The Project Life Cycle


Learning Outcomes


Consider different approaches to the project life cycle

Identify the different stages of the project life cycle and the key characteristics, demands and problems most likely to be encountered at each stage

Evaluate the concept of the project life cycle as a management tool

Investigate a variety of problem-solving approaches and the extent to which they may be relevant during the project life cycle


Comparison of Characteristics of Projects and ProblemsProjects A supported purpose/

importance Specifications of

performance (form, fit, function)

Known solution Stages with finite due

date Interdependencies Uniqueness Resource requirements

and tradeoffs Stakeholder conflict


Problems Intransparency – lack

of clarity of situation Polytely – multiple

goals Complexity – large

numbers of items, interrelations and decisions

Dynamism – time considerations


Three-stage Project Life Cycle

Source: Meredith &

Mantel, 2003, Wiley


Three Stage Life Cycle Why might work in project follow this

guideline? Any examples? – construction of new

housing estate Consider time/effort impact – fig 4.2 p 39 Alternative patterns? See p 40

Why is it important to know what is likely scale of progress? How identify in advance?

Group ex – look at p 42 – relative importance of project objectives – agree?


Four-stage Project Life Cycle

Source: Maylor

D1: Define the project

D2: Design the project process

D3: Deliver the project

D4: Develop the process

The brief

The proposal/PID

The outcomes

Process & product

knowledge


Maylor’s Four-phase ApproachPhase Key issues Key questions

Define the project

Organisational & project strategy; goal definition

What is to be done?Why is it to be done?

Design the project process

Modelling & planning; estimating; resource analysis; conflict resolution; business case

How will it be done?Who will be involved in each part?When can it start and finish?

Deliver the project

Organisation; control; leadership; decision-making; problem-solving

How should the project be managed?

Develop the process

Assessment of process & outcomes; evaluation; changes for the future

How can the process be continually improved?


Developing a Project Strategy

Gettingstarted

AnalysisCommitmentConsultation

Movingforward

PreparationFeasibility

trials

Bringingit in

Doingthe work

Making thechange

Handingit on

HandoverSupportReview

Source: CIPS


4 Stage Models

Group exercise Compare and contrast Maylors 4

stage model to Cips version on slide – also use Cips version p 45 – table 4.4

Are they effectively one and the same – or are there genuine differences?


Five-stage Project Life Cycle

Weiss & WysockiDefine

Close Out

Plan

Organise

Control

Changes

Corrective action

Stage 1

Stage 2

Stage 3

Stage 4 Stage 5


5 Stage Models

See also Frigenti and Comninos model – p 45/6

Tables 4.5 and 4.6 p 46 – individual homework exercise – critically evaluate these 2 models, recommending your preferred option for use in your organisation


McKinsey’s 7S Framework

Strategy

Style/culture

Systems Structure

Staff

Skills

Source: McKinsey 7S framework

Sharedpurpose


The 7S Project Approach

Element Description

Strategy High-level requirements of the project and means to achieve them

Structure Organisational arrangements that will be used to carry out project

Systems Methods for work to be designed, monitored and controlled

Staff Selection, recruitment, management and leadership of those working on project

Skills Managerial and technical tools available to project manager and staff

Style/culture Underlying way of working and inter-relating within the project/organisation

Stakeholders Individuals and groups who have an interest in project process or outcome

Source: 7S

framework adapted by

Maylor


7 S Framework

This is a more strategic approach to Project management – focuses upon strategic alignment and “fit”

Considers organisations capabilities, capacity, priorities and strategic objectives.

Does project fit or match these areas? Consider impact of project on other

activities and areas of the organisation – resources, culture etc


Problem Solving Techniques Maylor Thamhain & Wilemon Thomas-Killman Conflict Resolution Brainstorming Ishikawa Fishbone Analysis Cause – Effect – Cause Analysis Decision Trees Pareto Analysis 5 Whys Lewins Force Field Analysis


Systematic Problem-solving Model

Problemidentification

Seekalternativedefinitions

Selectdefinition

Evaluatepossiblesolutions

Selectsolution

Implement

Check and amend

Source: Adapted from Maylor


Thamhain & Wilemon

What are main causes of conflict in projects?

Group exercise – prioritise from following;-

Cost, Personalities, Priorities, Procedures, Schedules, Staffing, Technical Problems

At what stage will some be more significant than others – use 4 stage approach – formation, early implementation, main programme, closing.


Thomas-Killman Model

5 Approaches to conflict resolution Avoiding – what? When use? Forcing – what? Accommodating – why? Compromising – isn`t this always

the best way? Collaborating – how does this work? Is it horses for course approach?


Brainstorming Purpose

To generate a large number of ideas To stimulate creativity

Technique The ‘problem’ to be solved is described or

stated Everyone participates, either in turn or simply

by calling out in an orderly way A team member captures everything as said on

paper/board No judgement or criticism of others’

suggestions: the group accepts outrageous, unrelated ideas

Ideas are developed by building on others’ ideas When there are no more ideas, the exercise is

overWhat are difficulties of using this technique in work

environment?


Ishikawa Fishbone Analysis Purpose

To visually represent in specific categories the probable causes of a problem

To help people visualise a problem and structure its analysis

Process Identify the ‘problem’ and place it in the

‘Effect’ box. Trace the process through all stages to identify

all possible contributory causes. Use the Brainstorming technique to consider all the possible causes that may result in the ‘Effect’.

Group possible causes under headings (for example, the 4Ms: Methods, Manpower, Materials, Machines; or steps in the process being analysed).


Example of Fishbone Diagram

Error in item stock

control

EFFECT

MACHINERY

MANPOWER

METHODSMATERIALS

Insufficient spaceat locations

Incorrect tube

pattern Labelling onlowest rack

Incorrect quantityat location

Counting

Mixed or mis-

placed stock Poor quality

staff training

Poorprocedures

Returns

Excessivemovement

s

Consecutiverack

numbering

No stock

stickersLoose

components Uneven

tube lengths

Looseend

stops


Cause-effect-cause Analysis Purpose

To overcome stagnation in solving problems that are complex and difficult to structure

To identify the root cause of a problem Technique

Best results emerge when a skilled facilitator is available

State the problem and identify the effects Explore how the effects relate to one

another Use ‘why’ and ‘how’ successively to

explore causes of the observed effects Form a cause-effect diagram on which

action can be taken – see p 59/60


Decision Trees Purpose

To identify likely outcomes and probabilities in a problem

To calculate the expected value of possible outcomes

Technique Identify the scope of the decision to be

taken Identify sub-decision points Identify the outcomes and probabilities

possible from each decision point Calculate the expected values for

specific routes through the tree May 07 Exam paper Q 5


Session 4

Contemporary Approaches toManaging Projects


Learning OutcomesAt the end of this session candidates will be

able to: Explain the 6Σ approach and what it seeks to

achieve Identify the eight key processes and

requirements of PRINCE2 and evaluate the effectiveness of this approach to project management

Analyse the key requirements of Critical Chain and explain how projects that use CCPM can achieve better results than other methods

Explain concept of theory of constraints


Six Sigma

A continuous improvement method – Motorola, 1986

Since applied and popularised by others, for example, GE and Honeywell

Aim – To profitably improve the quality of

products and services to the customer

Statistically, a defect rate = 3.4 defects per million opportunities – 99.9997% perfect

Is this always appropriate?

Requires major investment in time and resources


Six Sigma Key characteristics:

Focuses on the customer's critical-to-quality needs (CTQs) – V.O.C.- what are they? How establish?

Concentrates on measuring product quality and improving process engineering

Gives top-down, project-driven process improvement and cost savings

Is a business strategy execution system and so is truly cross-functional

Provides focused training with verifiable ROI

Is business results oriented Has 3 key component areas – Process

Improvement, Process Design (Redesign), Process Management


Process Improvement - DMAIC

Define

Control

Measure

Analyse

Improve

… the project goals andcustomer deliverables

… future process performance so that improvements can be sustained

… the process by eliminatingdefects

… and determine the root causesof defects

… the process to determinecurrent performance


Process Design (Redesign) - DMADV Define – Id and set goals Match/measure – benchmark

against customer needs/expectations

Analyse – performance measurements & outline enhanced processes to meet customer needs

Design/implement – new processes in detail

Verify – controls to ensure compliance


Process Management

Changes how organisation is structured and managed

4 Steps are ;- 1) Understanding processes and

customer expectations 2) Continual measurement 3) Analysis of data 4) Responding to variances

Is 6 Sigma a project management tool?


Benefits of Six Sigma

Direct benefits decrease in defects reduced cycle time lower costs to

provide goods and services.

data-based decisions

sustained gains and improvements

better safety performance

fewer customer complaints

Indirect benefits improved customer

relations and loyalty team-building effective supply

chain management increased margins greater market

share world-class standard development of staff

skills


Statistical Basis of Six Sigma


Prince 2

Originated by UK Gov in 1989 – Prince 2 - 1996

Designed for public sector I.T. Projects

Now generic approach for all types of project

8 stage model – see Fig 6.1 page 67 and note the 8 inter-reacting stages plus external stage of Corporate Management –goup ex – read and evaluate


PRINCE2 (Projects In Controlled Environments)

Key processes Directing the project Planning a project Starting up a project Initiating a project Controlling a stage Managing product

delivery Managing the stage

boundaries Closing a project

Project management Project Board:

Project assurance Project support

Project manager Documentation:

Quality log Issues log Risk log

Bureaucratic controls

Emphasis on early conflict resolution


Prince 2

Group exercise What are advantages and

criticisms re this approach? See p 69 – agree with OGC claims?


Critical Chain Traditional project estimation techniques

ineffective: Time and resource constraints usually violated,

for example,• People have to multi-task – see p 71• General Uncertainties• Departments include safety margins• Parkinsons Law• Goldratt – pass on delays but not advances• ‘Student syndrome’ (last minute)

So, PMs rely on ‘padding’ of schedules and budgets to provide slack

Unknown nature of event interaction Maylor, 2003, Meredith & Mantel, 2005


Theory of Constraints Approach Project cannot move faster than slowest

process – “convoy effect” or “weakest link” Approach is to manage bottlenecks

(constraints) Activities with several predecessors

and/or successors Add ‘time buffers’ at bottleneck events

• ‘Safety stock’ has equivalent in manufacturing

• ‘Just-in-case’ equivalent to JIT • Statistically-derived ‘path buffers’

Establish the critical chain for scarce resources

Prioritise resources in chain eventsMeredith & Mantel, 2005 and Goldratt’s ‘Theory of Constraints’


Constraints 2 – see p 72/73

Main stages of the TOC approach: Identify the constraint (critical path/critical

resources)

Exploit the system constraint – ie work it to its maximum capacity

Subordinate everything to the constraints

Elevate the constraint – find additional resources for it

Go back and find new constraints May Exam Case Study Q 1


Session 5

Exploring the Stages of a Project


Learning OutcomesAt the end of this session candidates will be able

to: Identify and explain key stages in a typical project. Explain the tasks during project initiation and

definition Explain what is involved in developing a project

plan and budget and in evaluating project risk Explain how a project might be structured and

resources recruited, organised and allocated Identify key methods of measuring and controlling

project performance and recommend an appropriate approach for a project

Explain what is involved in the closure of a project Explain what is involved in the review and

evaluation of a project and the learning stemming from it


Stages of a Typical Project1. Initiation and definition2. Planning3. Organisation and implementation4. Measurement, monitoring, control

and improvement5. Closure6. Review, evaluation and learning Not directly comparable with earlier

examples of life cycle modelsLysons


Stage 1 – Initiation and Definition

What’s involved

Identifying project goals Listing project objectives Determining preliminary resources Identifying assumptions and risks

Tools & techniques

Financial appraisal Project initiation document (PID) Quality Function Deployment Risk analysis & risk/impact matrix Suitability/feasibility/vulnerability Voice of the customer


Stage 1 Needs to consider;- Project selection – “sacred cow”, operating

necessity, competitive necessity, product line extension, comparative benefit – what do these mean?

Numerical selection methods – unweighted factor (how many boxes does it tick), unweighted factor scoring ( what marks does it score in each box), weighted factor score (which boxes are more important)

See P79 - discuss


Stage 1 - continued

Scope/outcomes – what is excluded?

Timing Resources – what types? What R.O.I? Resources. Cashflow Risk Impact – how?

Likelihood/impact V.O.C. – remember 6 sigma


Stage 2 – Project PlanningWhat’s involved

Identifying activities Estimating time and cost Sequencing activities – why

important? Identifying critical activities Refining the plan Updating the initial risk analysis Writing the project proposal

Tools and techniques

Project initiation document (PID) Work breakdown structure –

what/who/where/when Network diagrams and CPA QFD Risk analysis & risk/impact matrix SIPOC – see session 7


Stage 2

What will be involved? Range and scope Sequence – often critical – why? Why written plan? How used? Project

creep Timing & Costs – assess spending

against likely achievements not time spent on activity – why?

Budgets – top down/bottom up? Use of Critical path analysis –

significant aspect at this stage – why?


Stage 3 – Organisation and Implementation

What’s involved

Determining personnel needs Recruiting the project manager Recruiting the project team Organising the team Assigning work packages


Network diagrams and CPA Seven tools of quality control Problem-solving tools Risk analysis & risk/impact

matrix Team roles (Belbin)


Stage 3

How project team is set up! How does existing organisational structure impact upon this?

Group exercise - What attributes do we need on the team?

Where do Belbin, Tuckman, Maylor models fit in this aspect of project management?

Cross functional teamworking – issues, problems


Stage 4 – Measurement, Monitoring and ImprovementWhat’s involved

Defining management style Establishing control tools Preparing status reports Reviewing the project schedule Issuing change orders

Tools & techniques

SIPOC Problem-solving tools Seven quality tools QFD


Stage 4

Consider both Organisation & Project Team Structure

What is appropriate management style – vary depending on project type/nature?

How control project? – which methods? Reporting process – to whom? Deadlines – key stages How/when review/evaluate progress? How communicate change? Important at this stage to refer back to

original proposal – why?


Stage 5 – Closure of the project

What’s involved

Obtaining client acceptance Installing deliverables Documenting the project Issuing the final report


SIPOC Seven quality tools


Stage 5

Have we met project aim? V.O.C. Implement project – do it! Does it

work? Why record the process used? Learning is crucial – can be more

important than project itself? Why? Report – to who? Finality Team feedback Closure


Stage 6 – Review, Evaluation and Learning

What’s involved

Conducting a project audit Learning lessons (from

successes and failures) Communicating the review,

evaluation and learning


SIPOC Seven quality tools (including

cost of quality) Project review


Stage 6

Audit process – did we achieve success?

Who audits? Internal? External? Audit only at end of project? Is on-going audit preferable? Why? What are problems/drawbacks re

auditing? Learning – Kolbs learning cycle

Spec exam paper Q 4


Session 6

Tools & Techniques for Data Collection,Analysis and Decision Making


Learning Outcomes


Utilise a range of tools and techniques to assist in data collection, analysis and decision-making:

Appraise appropriateness, selection and implementation of the tools and techniques available to the project team


Project Management Tools Seven tools of quality control Financial appraisal Voice of the customer Quality function deployment Project initiation document (PID) ‘Moments of truth’ Risk analysis and assessment (risk

mitigation) Risk/Impact matrix Suitability/feasibility/vulnerability


Evaluating PM Tools and Techniques

Appropriateness Show that you can pick the right tool

for the task

Selection Show that you are aware of the

limitations, as well as its capabilities

Implementation Show that you can use the tools

correctly


Ishikawa 7 Tools of QC

Flowcharts – graphical depiction of process Check sheets – simple log of occurrences

of specific event/problem Pareto Fishbone diagram Histogram – bar chart – shows data in

grouped frequency distribution Scatter diagram – eg correlation between

advertising spend and sales Statistical Process Control charts – control

limits re acceptable performance/tolerances


Risk Assessment

What is the situation to be assessed? What can go wrong? (What are the

hazards?) What is the probability that each hazard

will occur? What are the consequences if it does go

wrong? What is the uncertainty of our risk

assessment? Summary – probability, impact and

uncertainty Recommendations


‘Risk’ vs ‘Uncertainty’

Risk – When the decision maker knows the probability of each and every state of nature and thus each and every outcome. An expected value of each alternative action can be determined

Uncertainty – When a decision maker has information that is not complete and therefore cannot determine the expected value of each alternative



Financial Appraisal

Payback period – time to recover initial investment through estimated cash inflows from the project

Average rate of return (ARR) – average annual profit ÷ average investment

Discounted cash flow (DCF) – present value method

Internal rate of return (IRR) – rate of return that equates present value of cash inflows and outflows

Profitability index – NPV of all future expected cash flows ÷ initial cash investments


Quality Function Deployment QFD = VOC Final design/outcome = customers

needs See p 109/110 for worked example


Service Quality

Dimensions of service quality

Access Communication Competence Courtesy Credibility Reliability Responsiveness Security Understanding Tangibles

Parusuruman, Zeithaml & Berry

‘Moment(s) of truth’ An interaction with a

customer SAS in 1980s:

Average passenger was in contact with five SAS staff per trip

Five million passenger journeys a year

25m opportunities a year to satisfy or dissatisfy customers


Risk/impact Matrix

ImpactLow High

Pro

bab

ility

Low

Hig

h

Tolerance threshold(depends on organisation)


Session 7

Systems and Processes in Project Management


Learning Outcomes


Demonstrate the approach of systems thinking and process focus using process mapping techniques and procedures

Explain end-to-end processes Construct a flow chart for a process Explain the interfaces and swim lanes Explain the workings of critical chains software

and its impact on projects Appraise appropriateness, selection and

implementation of the systems and process techniques available to the project team


SIPOC Mapping

ProcessSuppliers Inputs Outputs Customers


Flow-charting Processes Purpose

To describe the ‘flow’ of a process Process

Identify the process to be charted. It should have defined inputs and outputs and an ‘owner’.

Define the start and end of the process with a circle or oval.

Identify the major steps and represent each with a rectangle. Start the description of each step using a verb (doing word), for example, measure diameter, collect from stores.

Show decisions as a diamond with no more than two outcomes (for example, ‘yes’ and ‘no’)

Represent the flow through the process with lines, using arrows where necessary for clarification, for example, up-arrow where flow returns to a previous step.


Work Breakdown Structure Lists tasks to be completed – assigns

responsibility for each task Can`t eat an elephant Supported by Linear responsibility

chart – who “owns” task and where co-operation between depts or individuals is required

Gantt Charts – measures actual and planned progress – quickly highlights overruns – resource planner – even out demand for resources


Interfaces and Swim Lanes Activities organised into channels –

each one representing the responsibilities of individual, dept or organisation

Highlight processing gaps and inefficiencies

Focus attention on high-risk areas where work is transferred between groups – the interface

See p 135


Critical Path Analysis

Use Profex p 114 – 118 Worked example Crashing the project

Pert – use of estimates of likely duration of activity, optimistic estimate and pessimistic estimate to calculate mean time and standard deviation re activity.

Then use of probability statistics to estimate likelihood of over-runs

Gert – uses concept that some activities may fail & need repeating – use of statistics to estimate likely occurrence and costs of such events


Session 8

Techniques for Purchasing and Logistics Projects


Learning OutcomesAt the end of this session candidates will

be able to:

Identify a range of purchasing and logistics projects

Identify characteristics that differentiate these projects from projects in other functional areas

Apply and appraise the usefulness of standard project management tools and techniques for purchasing and logistics projects

Apply computerised project management systems for purchasing and logistics projects


Examples of P and S Projects Group exercise – what projects are

currently running in your org purchasing function?

What is your involvement? What are key objectives? What are main difficulties and

constraints?


Characteristics of P and S projects Specific Time Constrained Limited Resources Cost Reduction Product performance Overcoming reluctance to change by internal

stakeholders Including int. Stakeholders in project – getting

their commitment Accessing variety of data – internal & external Securing significant “added value” for org. Develop good external relationships with

suppliers


Managing P and S Projects Group exercise Applying concepts and models –

which of those examined so far do you use in your organisation?

Applying tools and techniques – which work best in your org?

Applying software – which do you use? How effective is it? What are advantages? See next slide


Software Systems

Provide support in: Tracking contracts Tracking

responsibilities Tracking activities Communicating Integrating E-tendering

Evaluation criteria The nature of the

products Ownership of the

code Stability of

requirements Software

maintenance and development


Software Systems

Group exercise What are main benefits in using

software packages for running projects?

What are the disadvantages?


Session 9

Key Factors in Successful Project Management


Learning Outcomes


Evaluate the elements of the ‘iron triangle’ and their interdependency

Contrast the ‘iron triangle’ approach with the contingency and critical chains (‘crashing’) approaches

Analyse and identify process-based factors in the success and failure of purchasing and logistics projects

Explain the requirements of effective project leadership Appraise the qualities and characteristics of a successful

project manager Analyse and explain the characteristics and importance

of teamwork in a project Analyse the extent to which people management and

leadership issues contribute to success and failure in projects


The ‘Iron Triangle’

Quality

Cost Time

Constituents of objectives:•Purpose•End result•Success criteria


Iron Triangle

Standard idea Simple concept Relatively simple factors to measure Relevant for all projects – at least in

part Need to clarify objectives of each

clearly at outset Fundamental to negotiations However – remember targets will

probably change during project lifetime


Contingent Approaches - no one “best way” – “it depends”

Developed during the 1990s to overcome weaknesses in the previous ‘one best way’ approach

Loose framework of approaches – use most suitable for the circumstances

Emphasise and cater for: Strategic context of projects with

their wide range of stakeholders Developments in technology New management methods, for

example, virtual teams Development of more capable PM

software


Contingency approach 2

Project managers integrate: Resources Knowledge Processes

Means using one approach (or more) appropriate to the circumstances (contingencies)


‘Crashing’ Project Float

‘Crashing’ is the process of reducing time spans on critical path activities so that the project is completed in less time

Usually involves greater cost: Overtime working Allocating additional resources Subcontracting

Effect:

Time

Cost


Responsibilities of a Project Manager

Responsibility to the parent organisation

Responsibility to the client

Responsibility to the team members

“Above all, the PM must never allow senior management to be surprised” – Being prepared to give ‘bad news’



Key Activities of Project Managers

Shaping goals and objectives – project goal inevitably changes

Obtaining resources – easy? Building roles and structures for

their team – “followers make their leader”

Establishing good communications Seeing the whole picture –strategic

vision Moving things forwards (especially

in difficult circumstances) - driver


Role and Skills of the Project Manager Background and experience relevant to

needs of project Leadership and strategic expertise for the

‘big picture’ Technical expertise for sound decisions –

always? Interpersonal competence and people

skills to champion, communicate, facilitate, motivate, and so on

Proven managerial ability for getting things done

Weiss & Wysocki


Skills

“He who has not walked the road, does not know the potholes” – Confuscius

Group exercise Agree with Confuscius? What other skills does project

manager need?


Factors Affecting the Project Manager’s Role and Style

Nature of the task Organisational structure Organisational culture Individual motivations of the team

members

Style: Cooperation ↔ Coercion

Maylor


Four Roles for Project Managers

Leadership – the vision and style

Motivation – managing expectations and rewards

Team building – skills mix and cooperation between members

Communication – different aspects and different stakeholders


Project Teams

Personality theories, for example, Belbin based on: Intelligence (high/low) Dominance (high/low) Extraversion/introversion Stability/anxiety

Team activities Content – what the team does Process – how the group works

• Task processes• Maintenance processes

Team dynamics Forming Storming Norming Performing Mourning


Project Teams

Teams make projects succeed – agree?

Who is in team? Temporary? Cross functional Conditional Crisis? Virtual teams? – core – peripheral

team members


Belbin’s Team RolesImplementor Organising;

practical Inflexible

Coordinator Welcoming; strong sense of objectives

Ordinary intellect or creativity

Shaper Drive Prone to impatience and provocation

Plant Genius Up in the clouds

Resource investigator

Knows ‘a man who can’

Soon loses interest

Monitor evaluator

Judgement; critical reasoning

Unimaginative; not inspirational

Teamworker Promotes team spirit

Indecisive

Completer/ Finisher

Perfectionist Tends to worry about nothing

Specialist Technically specialised

Uninterested outside own area


Dimensions of Project Success Efficiency – meeting the budget and

schedule

Customer impact/satisfaction – complex to define and evaluate – what is their perception of success/failure? Does it match yours?

Business/direct success – delivering a result for the business

Future potential – again, somewhat difficult and nebulous to ascertain

Meredith & Mendel, 2005

See also work of Westerveld – Profex p180 para 1.10


Critical Success Factors in Projects

Clearly defined goals

Competent project manager

Top management support

Competent project team members

Sufficient resources allocated

Adequate communications

Control mechanisms

Feedback capabilities

Responsiveness to clients

Troubleshooting mechanisms

Project staff continuity

See p 158 – slight variance

Pinto & Slevin (1987) inSlack, Chambers & Johnston


Critical Success Factors

Westerveld Leadership & Team Policy & Strategy Stakeholder management Resources Contracting Project management itself –

scheduling, budgeting etc

P180 para 1.11


Ten Ways Projects may Fail1. Failure to appreciate

the impact of a multi-project environment on single project success

2. Irrational promises made due to a failure to take into account the variable nature of task performance

3. Irrational promises made due to a failure to take into account the statistical nature of project networks

4. Insufficient identification of dependencies

5. Focus on, and active management of, only a portion of what should be the full project

6. Reliance on due-date and wasting of any safety included in the project

7. Wasting of resources through sub-optimal utilisation

8. Wasting of the ‘best’ resources through over-use, multi-tasking and burn-out

9. Delivering original scope when conditions/needs change OR accepting changes to scope without sufficient impact analysis

10.Multi-tasking

Group ex – what others can you add?


Project Failure

Consider Greer – p 159 table 11.4 Do you agree with these? Are they more logical than those

selected on previous page?


Session 10

Project Management and Strategic Practice


Learning OutcomesAt the end of this session candidates will be able to:

Critically evaluate the key characteristics of the various forms of organisation structure and culture and their consequences for project management

Explain the key factors for consideration in choosing the best organisational structure for a project

Critically evaluate the use and value to organisations of project management maturity models

Evaluate the relationship between the business excellence model and the project management excellence model

Understand and explain what is meant by knowledge management and organisational learning

Demonstrate the strategic benefits and advantages gained through knowledge management and organisational learning

Appraise the impact of a organisational learning on the management of projects in purchasing and logistics


The Functional Structure

Advantages The owning

division should have the relevant expertise

Specialists can share their knowledge and overtime expertise accumulates

It provides a clear sense of ownership and ensures continuity

Disadvantages It may engender a

‘silo’ mentality. Other specialists may not be consulted

Routine work may take precedence over the project

Motivation may suffer if the project is perceived as a professional diversion

Theproject


The Project StructureAdvantages Manager has full

authority over the project with senior management backing

Grouping necessary resources in the project ensures rapid decision making

Relevant expertise is drawn from other parts of the organisation

The project team has a strong sense of identity and common purpose

Disadvantages It is suitable only for

larger projects as it is expensive to resource

Isolationism can develop leading to an ‘us’ and ‘them’ culture

Team members may lack technical expertise or understanding of user needs

Project A

Project B

Project C


The Matrix Structure

Advantages An individual project

manager takes responsibility, usually with strong senior management support

Relevant resources are allocated as required, giving flexibility as well as expertise

Disadvantages Decision-making

power may still reside outside the project team

Members are likely to be working only part-time on the project and have at least two managers, which may cause anxiety

There may be a high level of competition and in-fighting for resources

The project


What is Organisational Culture?

‘The deeper level of basic assumptions and beliefs that are

shared by members of an organisation, that operate

unconsciously and define in a basic taken-for-granted fashion an

organisation’s view of itself and its environment’

E. Schein (quoted in Johnson & Scholes)


A Typology of Culture

Type of culture Representation

Power A web – spider – power from the centre

Role A Greek temple – columns – highly defined structure – large, hierarchical orgs

Task A net or matrix – suit project/problem solving teams – power from knowledge

People A cluster – members superior to the org.

Source: Handy, Understanding Organisations


Culture and Management ApproachesCharacteristic of culture

Impact on management style

Anglo-Saxon cultures Delegation a preferred managerial style

Highly centralised authority

It is PM’s responsibility to seek out information

International culture PM cannot count on being voluntarily informed of problems by subordinates

Highly structured social classes

Participative management is difficult to practise; there is an assumption that the more educated, higher-class manager’s authority will be denigrated by using a participative style

Highly structured social system

The less direct managerial communication tends to be

Adapted from



Culture

Group exercise Why is it important for a project

manager to be aware of cultural issues within an organisation?


Organisational Readiness

The organisation places a high value on serving customers

The commitment of senior managers is long-lasting Key staff departments are positive about the

prospect of change The organisation has the human resources needed The organisation had the financial resources

needed The organisation as a whole recognises the need

for fundamental change The organisation has none of the complacency and

arrogance that often follows a sustained period of success

The organisation is free of the scepticism, mistrust and ambivalence that often follows a period of change

The organisation’s experience with TQM has created an environment that is receptive to change

Hammer & Stanton


Project Management Maturity Matrix

Flat-liners Little or no progress in project performanceMistakes repeated; performance stays flat

Improvers Some improvementPerformance improves slightly over time

Wannabes Follow every initiative going in order to catch the leaders

World-class performers

Set ever-increasing standards of performance

Flat-liners

Improvers

Wannabes

World-class


Project Excellence

Project excellence comprises cross-functional processes, project decision making, and team organisation that enable firms to bring high-quality products to market rapidly. Project excellence builds on functional excellence (that is, when a function has the necessary resources, along with standards, procedures, and tools, to be effective and efficient). Four major elements are required to deliver projects effectively. These elements include the people and processes involved in development: project governance, a defined development process, project core teams, and the project decision process are the four elements.


Project Excellence Model®

AppreciationUsers

AppreciationClient

AppreciationContractors

AppreciationInd. parties

AppreciationProject team

Projectresults

Results areas

Policy &strategy

Environment

Means

Contracting

Projectmanagement

Leadershipand teams

Organisational areas

Source:Westerveld

Feedback


EFQM Business Excellence Model

BusinessResults(15%)

Policy &Strategy

( 8% )

CustomerSatisfaction

( 20% )

Resources( 9% )

PeopleManagement

( 9% )

PeopleSatisfaction

( 9% )

Impact onSociety( 6% )

Processes(14%)

Leadership(10%)

Enablers Results


Knowledge Creation and Management

Internalisation

Learning by doing

CombinationBuilding a

‘knowledge system’

Externalisation

Articulating tacit knowledge explicitly

Exp

licit

kn

ow

led

ge

Tacit knowled

ge To

Socialisation Sharing

experiences

Tacit

kn

ow

led

ge

Explicit knowled

ge


A Learning Organisation is …

“… Capable of benefiting from the variety of knowledge, experience and skills of individuals through a culture which encourages mutual questioning and challenge around

a shared purpose or vision.”Johnson & Scholes


Characteristics of a Learning Organisation Existence of conflicting ideas and

views Tolerance of failure Acceptance of ambiguity and

uncertainty with their attendant risks

Surfacing of assumptions and explicit debate widely within the organisation

Tolerance of a diversity of views Tolerance of ‘organisational slack’


Using Learning and Discovery Start with a ‘loose’ project

approach built on many assumptions which are known

Accept the risks associated with the uncertainties

Track and review assumptions on a regular basis

Modify the assumptions and activities in the light of experience

Gradually learn what works and what doesn’t

Advanced project management ppts

Business

Transcript of Advanced project management ppts