PROJECT MANAGEMENT PART II

1
PROJECT MANAGEMENTPART II

• PROJECT ENVIRONMENT
• STAFF SELECTION
• ORGANIZATIONAL ISSUES

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Being an Effective Project Manager

• Being an effective project manager is among the
  most challenging jobs in industry for two
  reasons
• It requires management skills and abilities
  different from those required in a traditional
  functional management (line) position.
• There are very few training opportunities
  available to those moving into project
  management.
• The complex nature and multifaceted range of
  activities involved in managing projects
  precludes easily identifying managerial talent
  and continually stretches the capabilities of
  talented project managers.

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The Project Managers Roles

• A motivator
• A coordinator
• A leader
• An integrator

4
Project Managers Responsibilities

• Planning and implementing the projects safety
  program
• Taking an organization-wide view of the project
  (I.e., its overall contribution to the
  organization)
• Organizing project work efforts
• Recognizing both positive and negative trends in
  work and implementing timely corrections
• Directing and instructing team members
• Understanding and interpreting issues and needs
• Providing insight into possible future changes in
  work plans and managing changes to the project
• Bringing issues and recommendations to the proper
  management level for resolution
• Reporting the projects health to management on
  a regular basis

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A Comparison of Project and Functional Managers

• Project Manager
• Everything and everybody is usually new, so
  relationships must be created
• Creates a new project plan, usually with a
  one-time chance to do it correctly.
• Must structure activities and judge if adequate
  progress is being made. May also deal with team
  members or without project management skills.
  These factors dictate that a project manager has
  a high degree of self-confidence.

• Functional Manager
• Has ongoing relationship with every operating and
  business unit
• Planning is an ongoing activity with periodic
  reviews of plan versus action
• Skillful in the area of responsibility, has a
  degree of self-confidence that is balanced with
  objective measurable performance.

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A Comparison of Project and Functional Managers-
Cont.

• Project Manager
• Basic understanding of engineering and
  construction is a must for the manufacturing
  industry.
• Has a tremendous effect on long-term
  operating/maintenance costs by spending or not
  spending capital.
• Has a unique opportunity to influence a broad
  range of risk trade-offs capital, technical,
  cost, quality, safety, maintenance, etc.

• Functional Manager
• Knowledge of engineering and construction is not
  generally required.
• Has a lesser effect on the operating/maintenance
  costs without capital expenditure or replacement.
• Opportunity is rare in traditional management to
  deal with trade-offs.

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A Comparison of Project and Functional Managers-
Cont.

• Project Manager
• Decision making is aimed at and deals primarily
  with problem prevention.

• Functional Manager
• Deals more with problem analysis and solutions.

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Challenges Faced by Modern Project Managers

• A safety-driven awareness to ensure the
  well-being of those involved
• A wider and more sophisticated customer base
  (stakeholders) to satisfy everybody (project
  sponsors, product/service end users, operations,
  maintenance, suppliers, consultants, and
  contractors)
• High-quality expectations for products/service,
  equipment, materials, engineering, construction,
  communication, and documentation
• A diverse work force consisting of men, women,
  minorities, and both skilled and non-skilled
  workers
• Possible organizational resistance to a project
• Tighter capital expenditure constraints, not only
  on the total cost, but also limiting the rate of
  cash flow
• Developing skills to meet all of these challenges
  on the job

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A Nationwide Survey- Problems

• Inadequate resources
• meeting unrealistic deadlines
• unclear goals/direction
• uncommitted team members
• insufficient planning
• breakdowns in communications
• changes in goals and resources
• conflicts between departments or functions

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Project Managers Skills

• People skills
• Management skills
• Business expertise
• Technical knowledge

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People Skills

• These skills encompass leadership, communication,
  and team building skills. The key components
  include
• creating personnel involvement at all levels
• being able to see the big picture
• motivating people with the desire to excel
• clearly seeing managements direction
• building multidisciplinary teams and actively
  supporting personal and career development
• communicating effectively through writing,
  reading, speaking, and listening

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Management Skills

• Effective decision-making (often with little
  information)
• planning and organizing multifunctional programs
• delegating realistically to stretch peoples
  capabilities, but not too far beyond their
  abilities
• following up to ensure that individual
  performance is satisfactory
• working with other organizations over which the
  project manager has little control
• minimizing changes

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Business Skills

• Estimating/cost control/cost forecasting
• planning and scheduling
• economic risk analysis
• purchasing
• contract management
• analytical skills to detect a trend or deviation

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Technical Knowledge

• Understanding technology and rends
• understanding market and product applications
• facilitating trade-offs
• integrating technical, business, and human
  objectives
• understanding the tools and support methods
  applicable to project execution

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How to Prepare for Challenges of the Future?

• Advance computer skills as a management and
  communication tool
• Foster a global view to enhance competitiveness
• Develop skills and learn other languages to be
  ready to manage multinational projects
• Network with other project managers by attending
  professional seminars and conferences
• Seek opportunities to learn from more experienced
  project managers

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Continued...

• Become more accessible to project team members,
  customers, and project stakeholders via e-mail,
  voice mail, and teleconferencing
• Assess a projects health from upper managements
  perspective
• Guard against the unexpected by developing
  frequent what-if? scenarios and developing
  contingency plans
• Learn and use project management tools such as
  earned value systems and cost and schedule
  tracking

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Project Manager Selection is Important

• A project manager is given license to cut across
  several organizational lines. His activities,
  therefore, take on a flavor of general
  management, and must be done well.
• Project management will not succeed without good
  project managers. Thus, if general management
  sees fit to establish a project, it should
  certainly see fit to select a good man as its
  leader.
• A project manager is far more likely to
  accomplish desired goals if it is obvious that
  general management has selected and appointed
  this person.

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Five Basic Considerations

• What are the internal and external sources?
• How do we select?
• How do we provide career development in project
  management?
• How do we develop project management skills?
• How do we evaluate project management performance?

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Additional Options

• Part-time vs full-time assignments
• Several project assigned to one project manager
• Projects assigned to functional managers
• The project manager role retained by the general
  manager

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Staffing Questions

• What people resources are required?
• Where will the people come from?
• What type of project organizational structure
  will be best?

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Guidelines for Recruiting and Assigning of
Project Personnel

• Project recruiting policies should be as similar
  as possible to those normally used in the
  organization for assigning people to new jobs.
• Everyone should be given the same briefing about
  the project, its benefits, and any special
  policies related to it.
• Any commitments made to members of the team about
  treatment at the end of the project should be
  approved in advance by general management. No
  other commitments should be made.

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Continued...

• Every individual selected for a project should be
  told why he or she was chosen.
• A similar degree of freedom should be granted all
  people.

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Responsibilities of the Project Office

• Acting as the focal point of information for both
  in-house control and customer reporting
• Controlling time, cost, and performance to adhere
  to contractual requirements
• Ensuring that all work required is documented and
  distributed to all key personnel
• Ensuring that all work performed is both
  authorized and funded by contractual documentation

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The Conception Phase

• The goal of the conception phase is the
  preparation of a list of practical ideas that
  will lead to a viable project.
• The purpose of the conception phase is to develop
  ideas for projects that are of interest and value
  to you, to potential funding sources, and to your
  project team.

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Activities of the Conception Phase

• Define a problem and risks involved
• Identify both your customers and potential
  funding sources.
• Improve your skills and abilities, as well as
  those of the team, to meet the needs of the
  project.
• Identify others who have the skills and abilities
  that you and your team lack.
• Prepare documentation for your proposed
  solutions.
• Devise a plan that includes the work you must
  perform.

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Conception Phase Activities

• Organize a team and formulate a concept
• Select the project
• Identify customers with a need to be fulfilled
• Locate sources of funds to fulfill that need
• Brainstorm to select projects to be considered
• Identify risks for each potential project
• Select one project and gather more information
• Search for and document alternative solutions

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Conception Phase Activities (cont.)

• Initiate conception phase documents
• Prepare the project selection rationale
• Prepare the project description
• Prepare the preliminary specifications
• List tasks, schedule, and budget constrains
• Expand team and identify supporting organizations
• Complete the planning of the next phases of the
  work
• Convert document drafts into final documents

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Conception Phase Activities

• Organize a team and formulate a concept
• Select the project
• Initiate conception phase documents
• Expand team and identify supporting organizations
• Complete the planning of the next phases of the
  work
• Convert document drafts into final documents

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Activity 1. Organize a team and Formulate a
Concept-Key Questions in Project Planing
WHO?
WHEN?
WHAT?
WHERE?
HOW?
WHY?
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At the Planning Stage

• Who will be responsible for the work?
• What is to be accomplished and by whom?
• When is it to be implemented?
• Where is it to be performed?
• Why should it be performed?
• How will the performance of the project be
  controlled?

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Before Project Initiation

• Who would be the potential customer and is the
  proposed project worthwhile to the potential
  customer?
• What will be the approximate cost of the project?
• When does the customer require the project to be
  completed?
• Where will the funds for the project originate?
• Why should this project be pursued instead of
  another project?
• How will the project be accomplished?

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Conception Phase Activities

• Organize a team and formulate a concept
• Select the project
• Initiate conception phase documents
• Expand team and identify supporting organizations
• Complete the planning of the next phases of the
  work
• Convert document drafts into final documents

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Activity 2 Select the projectIdentify
customers with a need to be fulfilled

• A need is something that is considered necessary
  or essential.
• Can you establish if the need is real or
  imagined?
• Are they or you able to express that need in
  writing?
• Can the need be separated into parts?
• Is each part important enough to continue to be
  considered a separate need?
• How serious are you about committing funding to
  fulfill the need?
• Desires is similar to a wish. It is longing for
  something that promises enjoyment or
  satisfaction. A desire is not a need. A strong
  desire may eventually become a need.
• Luxury is the use and enjoyment of the best and
  most costly things that offer satisfaction.

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Significance
MOST LEAST
NEEDS Housing Food Clothing
DESIRES Purchase car Purchase home Join health
club
LUXURY Purchase sports car Go to Bahamas Eagles
winning a game
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Activity 2 Select the projectLocate Sources
of Funds
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Activity 2 Select the projectBrainstorm to
select projects to be considered

• Brainstorming is the unrestrained offering of
  ideas and suggestions by all members of a team
  during a meeting that focuses on a predetermined
  range of potential projects.

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Activity 2 Select the projectIdentify risks
for each potential project

• High-risk areas are those portions of a proposed
  solution that may be difficult to implement and
  may cause the project to fail. High-risk areas
  require further investigation. They could be
• An unusual approach must be considered.
• Advances in technology are required.
• Personnel must develop new skills.
• New equipment, forms, and procedures must be
  developed and tested.

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Examples of Risk

• Tasks Risks
• Prepare site Environmental restrictions
• Excavate site Ledge, soil, water
• Erect foundation Temperature, weather
• Erect rough framing Quality of lumber, wind
• Shingle roof Wind, rain, snow
• Lay floors Condition of rough flooring
• Paint interior finish Temperature, humidity

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Activity 2 Select the project

• Select one project and gather more information
• Search for and document alternative solutions.

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Conception Phase Activities

• Organize a team and formulate a concept
• Select the project
• Initiate conception phase documents
• Expand team and identify supporting organizations
• Complete the planning of the next phases of the
  work
• Convert document drafts into final documents

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Activity 3. Initiate Conception Phase Documents

• Team members use their combined skills to
  identify the work to be performed and completed.
  The following procedures are suggested
• Identify and document the work to be accomplished
  in the form of tasks.
• Decide where one task ends and another begins.
• Write the descriptions of these tasks so that a
  logical sequence exists.
• Describe for each task the skills required to
  perform that task.
• Identify and list the materials and equipment
  required to perform each task
• Estimate the time required to perform each task.
• Estimate the cost to perform each task.

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Task Descriptions Included

• The identity and objective of each task
• The relation of each task to the overall project
• A description of the work to be accomplished
• The skills required to accomplish each task
• The specifications that define the quality of
  work and materials
• A schedule for the performance of the tasks
• The costs associated with accomplishing each task.

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Activity List
Select Site
Prepare Plans
Estimate Costs
Obtain Building Permits
Order Materials
Receive Foundation Materials
Construct Foundation
Prepare Site
Receive Building Materials
Construct Building
Obtain Final Approvals
Deliver to User
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Time Table
INITIAL TASKS FEB MAR APR MAY JUN JLY _________
__________________________________________________
__ Prepare Site Excavate Site Erect
Foundation Cap Foundation Erect Rough
Framing Shingle Roof Install Windows Finish
Exterior Siding Plaster Interior Lay Floors Paint
Interiors
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Conception Phase Activities

• Organize a team and formulate a concept
• Select the project
• Initiate conception phase documents
• Expand team and identify supporting organizations
• Complete the planning of the next phases of the
  work
• Convert document drafts into final documents

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Activity 4 Expand Team and Identify Supporting
Organizations

• Identify additional persons who want to be
  members of the project team for the remainder of
  the project.
• Establish a formal organization of all team
  members.
• Verify your choice of team leader. Designate the
  team leader as the manager if the team is large
  enough.
• Identify other persons or organizations who have
  the additional skills and abilities required to
  perform the planned project.

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Conception Phase Activities

• Organize a team and formulate a concept
• Select the project
• Initiate conception phase documents
• Expand team and identify supporting organizations
• Complete the planning of the next phases of the
  work
• Convert document drafts into final documents

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Activity 5 Complete the Planning of the Next
Phases of Work

• Verify that there is sufficient information
  available for planning purposes
• The team planning the project has sufficient
  experience to use the information effectively
• Determine the approximate amount of work
  necessary to perform the study, design, and
  implementation phases.
• Establish the boundaries of low and high project
  costs prior to initiating the study phase -
  bracketing the project costs.
• Identify any areas that may require detailed
  analysis during the study phase.

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Conception Phase Activities

• Organize a team and formulate a concept
• Select the project
• Initiate conception phase documents
• Expand team and identify supporting organizations
• Complete the planning of the next phases of the
  work
• Convert document drafts into final documents

50
Activity 6 Convert Document Drafts into Final
Documents

• A phase is not finished until the paperwork, or
  documentation, is complete. The documents to be
  completed during the conception phase are
• project selection rationale
• Preliminary specifications
• Project description

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Setting Expectations A Critical Pre-project
Activity

• The best way of guiding the formation of
  expectations is to present an attractive plan at
  the moment when the need has just become evident
  and there are no serious alternatives in
  contention.
• Knowing what needs or problems will be beforehand
  is helpful in developing possible solutions and
  setting the expectations.
• Proposals should be saleable or attractive.
• The right people should be present at the right
  time with the right ideas to set the
  expectations. This concept is called positioning.
• Often, it is not possible to be at the right
  place at the right time. Thus , a group of allies
  or friends in the appropriate places is needed
  networking.

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Setting Expectations A Critical Pre-project
Activity cont.

• After the inception phase, there is still
  opportunity to influence the settings of
  expectations. During the development phase, the
  plan being advanced may have deficiencies or
  defects. These may be overcome with a new plan or
  a rewrite of the proposed plan.
• The tactic of using new information to define or
  redefine the problem may be helpful in the
  development phase.
• Participation by the end users in the early
  stages of planning will lead to commitment to the
  plan and ultimately the success of the plan.
• During the justification phase, the manager
  should ensure that the appropriate amount of
  resources are committed to the project.
• During the course of project, it may appear that
  the outcomes will be significantly different
  (usually less) than expected. If this occurs, the
  project manager should renegotiate the
  expectations as early as possible.

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Concept of a Project Team

• They will be working on tasks that involve more
  than one person.
• Some peoples tasks will require milestones or
  end products from the tasks of other people on
  the team.
• The team will share common methods and tools.
• The team will have to identify and solve issues
  together and live with the results together.
• Most importantly, the project will sink or swim
  depending on the final end product.

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High Performing Teams

• The team shares a sense of common purpose, and
  each member is willing to work toward achieving
  project objectives.
• The team identifies individual talents and
  expertise and uses them, depending on the
  projects needs at any given time. At these
  times, the team willingly accepts the influence
  and leadership of the members whose skills are
  relevant to the immediate task.
• Roles are balanced and shared to facilitate both
  the accomplishment of tasks and feelings of group
  cohesion and morale.
• The team exerts energy toward problems solving
  rather than allowing itself to be drained by
  interpersonal issues or competitive struggles.

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High Performing Teams - Con.

• Differences of opinion are encouraged and freely
  expressed.
• To encourage risk taking and creativity, mistakes
  are treated as opportunities for learning rather
  than reasons for punishment.
• Members set high personal standards of
  performance and encourage each other to realize
  the objectives of the project.
• Members identify with the team and consider it an
  important source of both professional and
  personal growth.

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The Five-Stage Team Development Model

• Forming
• Storming
• Norming
• Performing
• Adjourning

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Different Types of Team Members

• The backers of the play - management, producers,
  investors
• Director - the project manager
• Main players - people who remain in the play
  during all or almost all acts and most scenes
• Bit players - people who come into the play for
  specific scenes and roles and then disappear.
• Cameo players - often, big name stars whose
  appearance adds luster to the play like some big
  management names at some stages.

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Issues Regarding Teams

• Where do we start in forming a team?
• How large a team should we have?
• How do we assemble a team?
• How can we attract good team members?
• How do we manage the team?
• How do we bring in new team members?
• How do we remove team members?
• What types of problems arise in teams? How can we
  deal with them?

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Advantages of a Small Team

• Coordination is easier with fewer people.
• There is less time spent in informing people of
  what is going on and in getting status updates.
• People tend to have more flexibility and greater
  accountability because they have more tasks
  individually and do more tasks themselves.
• The project manager can be involved in doing some
  of the work.

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Key Attributes of Team Members

• Experience
• Knowledge
• Business process experience
• Problem solving ability
• Availability
• Ambition, initiative, and energy
• Technology
• Communication skills

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PMs First Meeting with Individual Team Members

• The following issues should be covered
• What is expected of them?
• What is the project environment?
• What will happen to them after the project is
  over?
• Why were they chosen?
• What will happen to their old work?
• Will they learn new skills?
• How will the project help their careers?

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First Team Meeting

• Have them meet each other in the context of the
  project
• Repeat briefly the objectives and scope of the
  project
• Describe the general schedule
• Go over some initial issues
• Discuss the methods and tools
• Simulate an average meeting to show them what
  future meetings will be like

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Examples of Problems and Opportunities within the
Project Team

• Early alert and identification of issues
• Identification of new methods for use in the
  project
• Identification of new tools for use in the
  project
• Conflicts between line management and the project
  over project assignments
• Conflict over specific methods or tools used
• Project restructuring opportunities for greater
  parallel effort
• Competition over authority on resolving issues

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Continued.

• Conflict on specific issue solutions
• Resurfacing of past issues
• Inability to work together on specific tasks
• Priority conflict among specific tasks
• Team member reassignment from project
• Physical illnesses or vacation
• Lack of interest in work and project
• Sense that project is not going anywhere

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Continued.

• Disagreement over project objectives, scope, and
  strategy
• Conflict over structure of the project
• Adopted from Project Management for the 21st
  century by Bennet P. Lientz and Kathryn P. Rea,
  Academic Press, Boston, 1995, p123 Table 7.1

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Critical ChainPart Two
67

• Payback is the time period from investing until
  we expect the fruits of our investment to cover
  the investment.
• It is all somebody elses fault. That is
  corporate mentality always blame the external
  world.
• The lower the level of the person, the more
  finger points internally rather than externally.

68

• Unofficial reasons given by the project leader
• Corporate forced an unrealistic schedule to start
  with.
• It was dictated that we choose the cheaper
  vendors, even though it was known that they are
  less reliable.
• In spite of repeated warnings, efforts to recruit
  and train plant personnel and workers started too
  late.

69

• Blame it all on uncertainty.
• Why isnt the uncertainty properly factored into
  the original estimation?
• You are talking about the safety added to the
  project as a whole. I am talking about the safety
  added to each and every step in the project.
• The higher the uncertainty the longer the tail of
  the distribution.
• Why not the median? Because Murphy does exist.

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• The difference between the median and the actual
  estimate is the safety we put in.
• Many times a step appearing on the chart of the
  project leader actually represents many tasks
  done by many people.
• People do give their realistic estimates
  according to their worst experience.

71

• If each step in a project contains so much safety
  then in projects also most of the lead time is
  wait and queue.

72

• Critical path is defined as the longest chain of
  dependent steps. Longest in time, of course.
• It determines the time it will take to finish the
  project.
• Any delay on the C.P. will delay the completion
  of the project.
• That is why the project manager must focus on it.

73

• If all activities start at the earliest time the
  project manager will have too many things at hand
  and loses focus. Then projects becomes late.
• If they all start at the latest time, then there
  is no slack in the project.