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Page 1 of 3 Page 2 of 3 Page 3 of 3 Chapter 1 What is Project Management? Project Management for Engineering, Business, and Technology Prepared by John Nicholas, Ph.D. Loyola University Chicago Management Functions Planning Purpose or Goal Control Organizing Change Leadership Information Classification: General Characteristics of Projects ◼ Goal-oriented ❑ Somewhat unique ◼ ❑ ◼ ❑ ◼ Cross-disciplinary Cross-organizational Somewhat unfamiliar and risky ❑ ◼ Temporary; has target completion date and target cost Cross-functional ❑ ◼ Non-routine Time- and resource-constrained ❑ ◼ Aims at a specific end result or deliverables Involves something new or different Something is at stake Follows logical sequence or progression of phases or stages Information Classification: General What is “Project Management?” Simple Definition ◼ Management to accomplish project goals. Information Classification: General What is “Project Management?” Longer Definition Management to ◼ Define and execute everything necessary to complete a complex system of tasks ◼ Achieve project end results that might be unique and unfamiliar ◼ And do it ❑ by target completion date ❑ with constrained resources ❑ with an organization that is cross-functional and newly-formed Information Classification: General Features of Project Management 1. A single person, the project manager, heads the project organization. The project organization reflects the cross-functional, goal-oriented, temporary nature of the project. 2. The project manager is the person who brings together all efforts to meet project objectives. 3. Project requires a variety of skills and resources, and is performed by people from different functional areas or by outside contractors. 4. The project manager integrates people from different areas and disciplines in the project. Information Classification: General Features of Project Management (Cont’d) 5. Project managers focus on delivering particular products or services on time and on budget. Functional managers might be responsible for providing project workers and resources from their departments. Conflict may arise between project and functional managers. 6. A project might have two chains-of-command, one functional and one project, so people working in a project report to both a project manager and a functional manager. Information Classification: General Features of Project Management (Cont’d) 7. Decision making, accountability, outcomes, and rewards are shared between: • the project team • supporting functional units and • outside contractors. 8. Although the project organization is temporary, usually the functional or subcontracting units from which it is formed are permanent. When a project ends, the project organization is disbanded and people return to their functional or subcontracting units. Information Classification: General Project Management in History The role*of the project manager has existed for a long time. Two examples: •The title of project manager is recent and became common starting in the 1950’s. Information Classification: General 1413 Santa Maria del Fiore, Florence, Italy Architect, Manager: Filippo Brunelleschi Photo: John Nicholas Information Classification: General Santa Maria del Fore Brunelleschi’s mandate To “provide, arrange, compose or cause to have arranged and composed, all and everything necessary and desirable for the building, continuing, and completing the dome.” Circa 1413 Information Classification: General 1939 internal memo to establish new role, the “project engineer” Project Engineers should in effect be Chief Engineers for their particular project …they should then have at all times a general knowledge of the entire company situation concerning their project and…their thinking will be guided by this picture… [They] should appreciate the functioning of each of the subdivision [of the project, including] 1. Product (engineering) 2. Sales 3. Manufacturing 4. Quality 5. Service Information Classification: General Recent History of Project Management ◼1958 Publication of many articles on project management ◼ 1961 Systems Managers at IBM ◼ ◼ ◼ ◼ ◼ ◼ ◼ 1969 PMI founded by 5 volunteers 1992 5000 members 2004 142,000 members 2005 over 170,000 members worldwide in 120 countries 2008 267,000 members, 170 countries 2011 over 500,000 members, 185 countries Latest figures: more than 700,000 members, 195 countries Information Classification: General Where Do You Need Project Management? Answer: Situations where the work … ◼ Is Unfamiliar The job is different from the ordinary and routine. Requires that different things be done, the same things be done differently, or both. ◼ Requires Greater Effort The job requires more resources (people, capital, equipment, etc.) than are normally employed by the department or organization. ◼ Dynamic Environment The industry or environment involves high innovation, high competition, rapid product change, shifting markets. ◼ Continued… Information Classification: General Where Do You Need Project Management? Answer: Situations where the work … ◼ Requires a Multifunctional Effort The job requires lateral relationships between the areas to coordinate and expedite work and reconcile conflicts. ◼ Could Impact the Reputation of the Organization or Other Stakeholders Failure to satisfactorily complete the work could result in financial ruin, loss of market share, damaged reputation, loss of future contracts, or other problems for the stakeholders or larger environment. Information Classification: General Management by Project (MBP): A Common Approach ◼ Managing any kind of work as a discrete project ◼ An undertaking or set of activities is planned and managed as a project ◼ A team is formed for the sole purpose of performing the work, and a project manager assigned to guide and coordinate the work. Information Classification: General Different Forms of Project Management Basic Project Management ◼ ◼ ◼ ◼ Most common project approach Project manager has authority to plan, direct, organize, and control the project from start to finish. PM and functional managers are on the same organizational level. Implemented in two widely used forms—pure project and matrix. ❑ In pure project, the project is a complete, self-contained organization ❑ In matrix, the project is created from resources borrowed from the functional units. Information Classification: General Different Forms of Project Management Program Management ◼ ◼ Similarity between programs and projects ❑ both defined in terms of goals or objectives about what must be accomplished ❑ both emphasize time period over which goals or objectives are to be pursued ❑ both require plans, budgets, and schedules for accomplishing specific goals. Differences between programs and projects ❑ Program extends over a longer time horizon ❑ It consists of several parallel or sequential work efforts or projects coordinated to meet a program goal. ❑ Projects within a program share a common goal and resources, and often are interdependent. Information Classification: General Different Forms of Project Management (cont’d) New Venture Management ◼ ◼ ◼ ◼ Used for generating new products or markets. Team is specially created to find products/markets that fit the organization’s specialized skills, capabilities, and resources. After defining a product, the team may go on to design and develop it, then determine means for producing, marketing, and distributing it. Similarities between project groups and venture groups ❑ Focus on a single unifying goal. ❑ Multidisciplinary, with experts and managers from various functional areas ❑ Action-oriented and dedicated to change. ❑ Temporary. Information Classification: General Different Forms of Project Management (cont’d) Product Management ◼ ◼ ◼ A single person has authority to oversee all aspects of a product’s production scheduling, inventory, distribution, and sales Like the project manager, the product manager communicates directly with all levels and functions within and outside the organization The product manager coordinates functional units so that the total effort is directed at the accomplishment of product goals. Information Classification: General Different Forms of Project Management (cont’d) Project Portfolio Management ◼ Projects and programs are aligned with company goals ◼ Projects and programs are selected and grouped into “portfolios” (similar to investment portfolios) ◼ The objective: the right projects ◼ Decisions about selecting (adding), prioritizing, cancelling projects based on financial performance, resource demands, risks, etc. ◼ Resources are allocated to projects Information Classification: General Project Environments ◼ New Product and Systems Development Projects • SpaceShipOne and the X-Prize Competition • The Development of “Product J” at Dalian Company Information Classification: General Project Management Settings (Cont’d) ◼ Construction Projects ❑ ◼ ◼ Small Projects at Delamir Roofing Company Project Management in the Services Sector ❑ Auditing at CPAone ❑ Nonprofit Fundraising Campaign Project: Archdiocese of Boston Public Sector and Governmental Project & Programs ❑ Disaster Recovery ❑ NASA Project and Program Management Information Classification: General Miscellaneous Projects ◼ Maintenance ◼ Events ◼ Implementation of change. Information Classification: General Chapter 2 Systems Approach Project Management for Engineering, Business, and Technology Prepared by John Nicholas, Ph.D. Loyola University Chicago Definition of System A system is an organized or complex whole; a group of parts interacting in a coordinated way. 1. The parts of the system affect the system and are affected by it 2. The group of parts does something 3. The group is of particular interest. What you define as the system depends on your purpose. System Concepts and Principles Goals and Objectives ◼ Human-made systems are designed to do something; they have goals and objectives that are conceived by people. ◼ In designing a human-made system, the place to start is by defining the goal of the system and a hierarchy of objectives that relate to the aspects the system. System Concepts and Principles Elements and Subsystems ◼ Systems can be broken down into smaller parts. ◼ These parts in combination form “the assemblage of parts” that constitutes the system. ◼ The smallest part of a system is an element. ◼ The parts of the system might themselves also be systems; these are called subsystems. A subsystem is a system that functions as a component or part of a larger system. A Company as a System The “whole” system Company Management Personnel Marketing Production Finance Research and Development Functional subsystems Production manager Scheduling Production subsystem Manufacturing Manufacturing subsystem Team A Supervisor Team B Inventory Elements System Concepts and Principles Attributes ◼ Systems, subsystems, and elements each have distinguishing characteristics called attributes ◼ These describe or express the condition of system, subsystem, or element in qualitative or quantitative terms. ◼ In human-made systems, many of the attributes are designed into the system so that the system performs as required. System Concepts and Principles Environment and Boundary ◼ The environment refers to anything that influences the behavior or outcome of the system, yet lies beyond the decision maker’s or stakeholder’s ability to control ◼ The system is separated from its environment by a boundary. The boundary might be somewhat obscure, and it might be difficult to distinguish the system from its environment. System Concepts and Principles To distinguish the system from its environment ask two questions: Is it relevant to the system? Can the decision maker control it? Yes No Yes System No Environment The Irrelevant Environment System Concepts and Principles System Structure ◼ Elements and subsystems are linked together by relationships. The form of the relationships is referred to as the structure of the system. ◼ Most systems, including projects, can be conceptualized as hierarchical and network systems. Hierarchical structure X A a B b c d C e f g Network structure e d c b a g f Two ways of conceptualizing a project System Concepts and Principles Inputs, Process, Outputs, Interfaces ◼ Human-made systems achieve objectives by converting inputs into outputs through a defined process. ◼ Outputs: end-result of a system and the purpose for which the system exists. ◼ Inputs: the raw materials, resources, or prior steps necessary for the system to operate, produce outputs, and meet objectives. ❑ Feedback: Input that originates from the system itself. System Concepts and Principles Inputs, Process, Outputs, Interfaces (Cont’d) ◼ Process: means by which the system transforms inputs into outputs. ❑ One goal of system design is to create a process that produces the desired outputs and meets system objectives effectively, and minimizes consumption of inputs and production of wasteful outputs. ◼ Where the output of one element becomes the inputs of the other, they are said to interface. Input-process-output relationship Inputs Process Feedback Outputs System Concepts and Principles Constraints and Conflicts ◼ Systems constraints are limitations that inhibit the ability of a system to reach goals and objectives. Time and money are two universal constraints. ◼ In human-made systems, the objectives of the subsystems sometimes conflict with each other, which reduces the ability for them or the overall system to realize their objectives. ◼ Removing conflict between the objectives of subsystems to enable the overall system to meet its objectives is called integration. System Concepts and Principles System Integration ◼ For a system to perform effectively and achieve its goal, all of its elements must work in unison. ◼ Designing, implementing, and operating a system to achieve pre-specified objectives and requirements through the coordinated functioning of its elements and subsystems is called system integration. System Concepts and Principles Open Systems and Closed Systems ◼ A closed system is one that is viewed as selfcontained; “closed-systems thinking” means to focus on the operation, structure, and processes of a system without regard to the environment. ◼ An open system interacts with and adapts to its environment. ◼ Any system that must be adaptable to its environment must be treated as an open system. ◼ Human organizations and social systems are open systems. System Concepts and Principles Natural versus Human-Made Systems ◼ Natural systems came into being by natural processes (e.g., animal organisms and planetary systems). ◼ Human-made systems are designed and operated by people (e.g., communication systems and human organizations). ◼ Projects exist for the purpose of creating or enhancing human-made systems (or altering natural systems). Systems Approach The systems approach ◼ Acknowledges that the behavior of any one element affects the behavior of others and that no single element can perform effectively without help from the others. ◼ Recognizes interdependencies and causeeffect relationships among elements. Systems Approach (cont’d) ◼ Retains attention on the overall system and the ultimate goal ❑ ◼ Allows focus on the parts, but only in regard to their contribution to the whole system Avoids actions that focus exclusively on parts of the system, since such actions are suboptimal for the total system. Systems Approach Methodology An Orderly Way of Appraisal The systems approach is a methodology for solving problems and managing systems that accounts for 1. The objectives and the performance criteria of the system. 2. The environment and constraints of the system. 3. The resources of the system. 4. The elements of the system, their functions, attributes, and performance measures. 5. The interaction among the elements. 6. The management of the system. The methodology commonly employs models System Models ◼ ◼ A model is a simplified representation of the world; it abstracts the essential features of the system under study. A physical model is a scaled-down abstraction of the real system. It includes some aspects of the system and excludes others. ❑ ◼ Example: model airplane. A conceptual model depicts the elements, structure, and flows in a system in terms of a schematic diagram or mathematical formulation. ❑ Example: population dynamics schematic (next) Conceptual model of population dynamics Deaths Initial age group aging Intermediate age group Births Migration aging Terminal age group System Life Cycle ◼ All living organisms follow life-cycle stages ConceptionC Nonliving systems life cycle • Conception • Design • Fabrication • Installation • burn-in • Operation • Deterioration • or obsolescence • Decommission Birth Growth Maturity Decline Death Systems Engineering ◼ ◼ ◼ The science of designing complex systems in their totality to insure that the components and subsystems making up the system are designed, fitted together, checked, and operated in the most efficient way. The conception, design, and development of complex systems where the components themselves must be designed, developed, and integrated together. A way to bring a whole system into being and to account for its whole life cycle—including operation and phase-out—during its early conception and design. Dimensions of Systems Engineering 1 3 2 Dimensions of Systems Engineering (Cont’d) 1. SE is a multifunctional, interdisciplinary, concurrent effort. ❑ ❑ Systems engineers work with the system’s stakeholders to determine their needs and what the system must do to fulfill them. The needs become the basis for defining the system requirements, which specify what the system will do. Dimensions of Systems Engineering (Cont’d) It addresses the system’s structure and elements—its functional and physical design. 2. ❑ ❑ System elements and subsystems are designed to perform the functions necessary to satisfy stakeholder objectives and requirements. The design effort focuses on how the system will meet the requirements. Dimensions of Systems Engineering (Cont’d) It takes into account the way the system will be produced, operated, maintained, and finally disposed of—the entire system life cycle. 3. ❑ This helps insure that the system will be economical to develop, build, operate, and maintain, and friendly to users and the environment. Systems Engineering Process Forsberg and Mooz’s V-model (adopted from K. Forsberg and H. Mooz in Software Requirements Engineering, 2nd ed., ed. R. Taylor, M. Dorfman, and A. Davis (Los Alamitos, Calif.: IEEE Computer Society Press, 1997): 44-77). Systems Engineering Process (cont’d) Creating a system concept that will satisfy requirements involves a series of steps to define the subsystems and elements of the system. The process is an iterative cycle of 1) 2) 3) top-down analysis of details (decomposing the system into smaller parts) bottom-up synthesis (building up and integrating the parts into successively larger parts) evaluation (checking to see that results meet requirements) Systems Engineering Process (cont’d) The downstroke of the V represents subdividing functions of the system into subfunctions and requirements. ◼ ❑ At each leve…
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