Download Томский политехнический университет Проектный менеджмент

Tomsk Polytechnic University
International Management Institute
Project Management
Prof. Dr.-Eng. А.А. Dulzon
Contents of the Course
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Module 1
Module 2
Module 3
Module 4
• Module 5
• Module 6
• Module 7
Introduction
Individual and Team Issues
Project Risk Management
Project Management
Organizational Structures
and Standards
Project Time Planning and
Control
Project Cost Planning and Control
Project Quality Management
Contents of the Module 1
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1.1 What is a Project?
1.2. What is Project Management?
1.3. Characteristics of Project
Management
1.4. Potential Benefits and
Challenges of Project Management
1.5. The History of Project
Management
1.6. Project Management Today
1.1 What is a Project?
• 1.1.1 Introduction
• 1.1.2 Projects and other
Production Systems
• 1.1.3 Characteristics of Projects
1.1.1 Introduction
The first stage in developing an understanding of
project management is to define what a project is
and what a project is not. This can be made more
understandable by contrasting with other production
systems.
1.1.2 Projects and other
Production Systems
A production system takes resource inputs and passes
them trough a transformation process that changes
them into the desired outputs.
There are three broad categories:
-mass production;
-batch production;
-project (non-repetitive) production.
Project versus Program
Usually a program is a set of projects aimed at
achieving some goal or objective (f.e. the
development program of TPU).
Typically, a program will be of longer duration
than any individual project within it. Some
programs might not have any specified end date
and will run until a decision is taken to stop or
replace them.
1.1.3 Characteristics of
Projects
• It involves a single, definable purpose, product or
result.
• It usually has defined constrains or targets in terms
of cost, time and performance requirements.
• It uses skills and talents from multiple professions
and organizations.
• It is unique. A project is generally a one-off activity
that is never repeated exactly.
• It is somewhat unfamiliar. It may possess
significant elements of uncertainty and risk. Failure
of the project might jeopardize the organization or
its goals.
1.1.3 Characteristics of
Projects
• It is a temporary activity. It is undertaken to
accomplish a goal within a given period of time. Once
the goal is achieved, the project is finished. This
applies to the project itself, as well as to the
organizational structure created to deliver it.
• A project passes trough several distinct phases.
Tasks, people, organizational structure and resources
change as the project moves from one phase to the
next.
• Usually it is part of an interlinked process (between
different projects).
• It is generally, except pure research and development
organizations, of secondary importance (not the
primary objective) to the organization.
• It is relatively complex as compared to the standard
functional processes.
1.1.3 Characteristics of
Projects
• Projects can be of many sizes, ranging from large
multinational projects to simple projects such as
organizing an association of alumni of the RussianAmerican Centers of TPU.
• Projects may be external, where they are carried out
for a client outside the organization and normally
defined by a binding contract. Projects may also be
internal, where there are generally set up to improve
the operations of the organization and the client
would be an internal project sponsor.
1.2. What is Project
Management?
• 1.2.1 Introduction
• 1.2.2 Definition of Project Management
• 1.2.3 The Basic Project Management
Structures
1.2.1 Introduction
• From the project
characteristics
highlighted above, it is
clear that projects
require a unique form of
management.
• This section considers
project management as a
discipline
1.2.2 Definition of Project
Management
• Project Management has numerous
definitions. F.e.:
• The process of planning and executing a
piece of work from inception to completion
to achieve safe achievement of objectives
on time, within cost limits and to the
specified standards of quality.
• The organizing, planning, directing,
coordinating and controlling of all project
resources from inception to completion to
achieve project objectives on time, within
cost, and to the required quality standards.
1.2.2 Definition of Project
Management
• The project management is
concerned with:
• 1) achieving time, cost and quality
targets, within the context of overall
strategic and tactical client
requirements;
• 2) the life cycle of the project:
planning and controlling the project
from inception to completion.
Project-management timecost-quality continuum
Cost
B
A
Time
Quality
1.2.3 The Basic Project
Management Structures
• Internal or non-executive Project
Management – formation of a project
team operating within an existing
organizational structure.
• External Project Management is
where an external project manager
is appointed on a consultancy basis
and acts as an external agent on
behalf of the client.
Internal Project Management
Board of directors
Managing Director
Program
Manager
Marketing
Director
Operations
Director
Financial
Director
IT
Director
Project
manager
Marketing
input
Operations
input
Financial
input
IT
input
Project
manager
Marketing
input
Operations
input
Financial
input
IT
input
Project teams operating across functional boundaries
Internal Project Management
• Advantages:
– Good flexibility in the use of people. Staff are
primarily employed to perform a functional task
but temporary assigned to projects that require
their particular expertise.
– Individual experts can be effectively used across
a number of projects.
– Specialist knowledge can easily be built up and
shared within a functional department.
– Continuity of expertise, procedures and
administration is maintained within the function
despite any personnel changes that may occur.
The hybrid organization enables people in different
functional areas to be formed into highly integrated and
very efficient project teams.
Internal Project Management
• Disadvantages:
– The project manager has to negotiate with individual
functional managers for to use of shared projectfunctional resources. Functional resources often
remain under the direct control of the functional
manager.
– A project may be subject to two lines of authority. A
project individual may report directly to both the
project manager and the relevant functional manager.
– Decision making, accountability, rewards and potential
benefits are shared among the members of the project
team and the functional units.
The task of project management is more complicated and
diverse than in other management areas.
External Project Management
• The external project manager acts as an external
agent on behalf of the client. He appoints other
external consultants to form an external project
team.
• Advantages:
– The external system is more flexible than the internal
system. External consultants can be hired as required
as a function of workload demand.
– The external project manager has direct control over
the project team.
– The functional structure of the organization has no
impact on the project.
Typical external project
management arrangement
Organization
Senior management
Interface manager
External project manager
Functional manager
Functional manager
Resource
Resource
Functional team
Functional team
External consultants
External suppliers External contractors External subcontractors
External Project Management
• Disadvantages:
– Instructions and communications between the
external consultants and the client have to cross
the organizational boundary. This boundary
represents a barrier to effective communication.
– Team allegiance tends to be lower in external
structures. The objectives of the external
consultants do not correspond to the objectives
of the client, and the external consultants owe
no allegiance to the client organization.
– There is a greater requirement for risk transfer
and contractual control.
– There is no in-built knowledge of the firm.
1.3. Characteristics of
Project Management
1.3.1 Introduction
1.3.2 Multiple Objectives
1.3.3 International Cooperation and
Standards
1.3.4 Multi-Industry/Multidisciplinary
Practitioners
1.3.5 Generic Benchmarks
1.3.6 Specific Provisions
1.3.7 Project Life Cycle
1.3.1 Introduction
• Modern project management has a number
of characteristics that differentiate it from
traditional management approaches:
– It has several objectives at once.
– It is international in that there are standards that
are set by an international agency.
– It has relevance and applicability across most
industries.
– It is unique in that:
• It uses both international and industryspecific benchmarks.
• Project management professionals provide
advice in relation to full cycle of a project,
from inception to completion.
1.3.2 Multiple Objectives
• The objectives are concerned with time,
cost and quality at once.
• Project management decisions that affect
any one of these variables will usually
impact on the others.
• Project success and failure criteria are
usually set by the client or executives of
the parent organization at the outset.
• For each of the variables of time, cost and
quality there should be a minimum
acceptable condition. Project management
is concerned with meeting or exceeding
these minimum criteria in all cases.
1.3.3 International
Cooperation and Standards
• In contrast to most other types of professional
practice project management is international.
• It is unique in that its codes of practice and body of
knowledge are based on international rather than
on national practice.
• A global approach has been established and is
governed by an international standard association –
International Project Management Association
(IPMA).
• This body coordinates the activities of specific
international professional associates such as the
Association for Project Management (APM) in the
UK, the Project Management Institute (PMI) in the
USA and the Project Management Association in
Russia.
1.3.4 Multi-Industry/Multidisciplinary Practitioners
• The concepts and practices of
project management are not specific
to any one industry.
• The time, cost and quality planning
and control techniques used in
project management are applicable
to agriculture, education, process
engineering and so on.
1.3.5 Generic Benchmarks
• ISO1006 is the European code of practice
for project management of the design
process. It is generic and is applicable
across all industries.
• The British Standard BS6079 is the current
UK standard for project management
practice. It is again generic and is
applicable across all industries.
• There are a number of industry-specific
standards. While these specific codes are
less general than the generic codes, they
are consistent with them.
1.3.6 Specific Provisions
• Traditionally, project managers were
selected from functional specialists within
an organization. In many cases, the people
leading and managing projects were
designer or other types of specialists who
assumed the role of manager for the
duration of the project.
• The modern concept of project
management includes the professional
project manager who has relevant
industrial experience in project
management rather than in design or in
some other specialization.
1.3.7 Project Life Cycle
• Traditionally, consultants advised on,
and managed, only one or two
sections of an overall project life
cycle. As a result, there was a lack
of coordination between the different
life cycle phases.
• Project management as a discipline
attempts to correct this by giving
professional advice on the whole life
cycle of a product.
Typical Life Cycle phases
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Inception
Feasibility
Prototype
Full design development
Tendering and contractual arrangements
Manufacturing
Commissioning
Operation
Decommissioning
Removal and recycling
1.4. Potential Benefits and
Challenges of Project
Management
• Potential benefits:
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Increased concentration on a specific objective;
More efficient use of company resources;
Increased accountability;
Potential for healthy competition between functional and
project units;
Reduced disruption of functional operations;
Enhanced visibility of strategy implementation;
Consideration of life-cycle costs;
Increased product development and release speed;
Improved formal and informal communication;
Control of simultaneous multiple objectives;
Improved security of project related information;
Improved team spirit and cohesion;
Improved innovation through the use of multidisciplinary
decision making;
Opportunities to develop in-house interdisciplinary and
multidisciplinary teams, individual and management skills.
1.4. Potential Benefits and
Challenges of Project
Management
• Challenges:
– Key staff may be taken from the functional units.
That may have a corresponding detrimental effect
on functional performance.
– Project and functional managers may attempt to
compete for resources and this can have
detrimental effects on the company as a whole.
– Project team members may find themselves
conflicting orders from their functional and project
managers.
– Powerful functional manager may be able to use
their authority to deprive the project of necessary
resources.
1.4. Potential Benefits and
Challenges of Project
Management
• Challenges:
– In order to ensure parity of authority and control
between functional and project managers, a need
arises for an additional level of authority. The project
sponsor ensures that the functional and project
managers have equal authority over project team
resources and that no destructive competition occurs.
– Functional managers may be less flexible than project
managers and may feel pressured as a result of
project demands.
– Staff have to develop a more flexible approach and
become used to working in a multifunctional
environment.
– Project staff who have been working on a project for a
long period of time may have problems in re-adjusting
to functional working.
1.5. The History of
Project Management
• Projects are so old as the mankind itself.
• Elements of project management probably first came to
light in the great construction works of history, such as the
Pyramids, the Great Wall of China and the Roman roads and
aqueducts.
• As industry has evolved, it has become more complex. This
has resulted in more and more complex projects, which
created a need for more effective ways to manage them.
• Project management in its current form emanated from the
atomic bomb development program by the US military in the
1940s.
• In 1957, DuPont Corporation created the critical path
method (CPM), and in 1958 the US Navy launched the
program evaluation and review technique (PERT).
• About ten years later, both methods were combined with
computer simulation techniques into a method called
graphical evaluation and review technique (GERT).
1.5. The History of
Project Management
• In the late 1960s, the federal government in USA mandated
the use of network schedule/costing methods, first with the
US Department of Defense and NASA contracts, then later
with other large-scale projects such as nuclear power plants.
• The Project Management Institute in the USA and the
Association for Project Management (APM) in the UK were
formally instituted in the late 1960s.
• In the 1970s, planning and costing based on an “earned
value” concept came into the widespread use.
• In 1988, the APM produced its Body of knowledge and
assisted greatly in the preparation of British Standard
BS6079 in 1969 and European International Standard ISO
1006 in 1997.
• Prior to the 1980s, project planning and tracking systems
were available only for large computers. Today, low-cost
microcomputer and software have made it possible to apply
sophisticated planning, scheduling, cost analysis, resource
planning and performance analysis to projects of all sizes.
1.6. Project
Management Today
• Project management is now used by numerous
different disciplines and has evolved into an integral
management component for a wide range of
industries.
• Project management has evolved into a global
generic profession.
• Project managers all over the world speak the same
project “language”.
• Project management as a profession is proving very
successful. The UK and US professional bodies for
project management are growing faster than any
other comparable professional bodies in either
country.
Review Questions
What is a project?
•
True or false?
• 1.1 All types of production systems involve projects.
• 1.2 Mass production systems comprise a series of
individual projects.
• 1.3 A mass production system manager generally
has more or less the same role and responsibilities
as a project manager.
• 1.4 Project products tends to be largely repetitive
and complex.
• 1.5 Knowledge transfer between projects is similar
to knowledge transfer between batches.
• 1.6 A project generally has a single definable
purpose, product or result.
Review Questions
What is a project?
•
•
•
True or false?
1.7 A project is generally a temporary activity, concerned with
the achievement of a specific goal.
1.8 Projects can exist both internally and externally to the
parent organization.
Which of the following is correct?
1.29 Most projects have clear success criteria expressed in
terms of
A
B
C
D
time and cost
quality and cost
time and quality
time, cost and quality
Review Questions
What is a project?
•
Which of the following is correct?
• 1.30 A typical example of a mass production system is
the manufacture of
A
B
C
D
an office building
an automobile
office carpets
All three
• 1.31 A typical example of a batch production system is
the manufacture of
A
B
C
D
an office building
an automobile
office carpets
All three
Review Questions
What is a project?
•
Which of the following is correct?
• 1.32 A typical example of a project production
system is the manufacture of
A
B
C
D
an office building
an automobile
office carpets
All three
• 1.33 Internal project management systems
typically involve projects running within
A
B
C
D
other projects
matrix groupings
functional groups
All three
Review Questions
What is a project?
•
Which of the following is correct?
• 1.34 External project management systems
typically involve
A
B
C
D
only internal team members
only external team members
both
neither
Review Questions
What is Project Management?
•
•
•
•
•
•
•
True or false?
1.9 Project management is not concerned with the entire
life cycle of the project.
1.10 Project management is concerned with multiple
objectives.
1.11 The success of most projects can be evaluated in
terms of time, cost and quality.
1.12 Project management has evolved primarily as a
result of the increasing complexity of projects.
1.13 Project success and failure criteria are fixed at the
outset of a project and cannot be changed once the
project has started.
1.14 Project management and functional management
are mutually exclusive and cannot exist in parallel within
an organization.
Review Questions
What is project management?
True or false?
1.15 Research and development work would typically be
best suited to a functional organizational structure.
1.16 Highly rigid functional organizations, such as the
armed forces, cannot make effective use of internal
project structures.
1.17 Project managers tend to have more power and status
than functional managers.
1.18 Project managers tend to be selected from within the
ranks of the organization functional managers.
1.19 Successful project managers always make the best
functional managers.
1.20 External project management is more cost-effective
than internal project management.
Review Questions
What is project management?
•
True or false?
• 1.21 Changing success criteria can be managed using
trade-off analyses.
• 1.22 The IPMA is the international steering body for
global project management practice.
• 1.23 BS6079 is an EU standard for project management
practice.
• 1.24 Life cycle phases vary in importance as a function
of project type.
•
Which of the following is correct?
• 1.35 Project management involves the simultaneous
control of time, cost and quality. Other obvious control
criteria could be
A company strategy
C human resources
B dividend levels
D safety
Review Questions
What is project management?
•
Which of the following is correct?
• 1.36 In general terms, project and functional objectives
are likely to be
–
–
–
–
A
B
C
D
wholly compatible
generally compatible
generally incompatible
wholly incompatible
• 1.37 In corporate terms, the success of the project in
relation to the success of the function is likely to be
–
–
–
–
A
B
C
D
more important
less important
equally important
variable
Review Questions
What is project management?
•
Which of the following is correct?
• 1.38 The global body for project management
practice is
–
–
–
–
A
B
C
D
APM
PMI
IPMA
BS6079
–
–
–
–
A
B
C
D
a global standard
a European standard
a British standard
other
• 1.39 What does BS6079 acts as?
Review Questions
The History of Project Management
•
True or false?
• 1.25 Project management as a discipline originated
during the Roman road building program in the first
century AD.
• 1.26 PERT and CPM methods of project planning and
control first appeared as operational tools in the 1940s.
•
Which of the following is correct?
• 1.40 Project management evolved largely in response to
increasing
– A Project complexity
– C Project time scales
B project costs
D project team development
• 1.41 Project management evolved initially and primarily
in
– A the UK
– C Germany
B the USA
D Japan
Review Questions
Project Management Today
•
True or false?
• 1.27 Project management is proliferating through a
range of professional disciplines.
• 1.28 Project management is a tool for strategy
implementation.
•
Which of the following is correct?
• 1.42 Project management as a profession is
–
–
–
–
A
B
C
D
in decline
static
growing slightly
growing rapidly