CLAMDA-IM – Project Management Project Management 1.Introduction a.Course aim b.Business organization development c.The “Project”: definition and characteristics

CLAMDA-IM – Project Management

Project Management

1. Introductiona. Course aim

b. Business organization development

c. The “Project”: definition and characteristics

d. Project Management

e. Conditions to manage a good project


Project definition

“…Projects means achieving defined targets respecting time and budget. Projects cut the traditional ortganization lines (functional). Projects are unique tasks and never similar to past projects…A project may be like a complete new product creation process, a new company or another specific results. The target to achieve, often, is more important than the process adopted to achieve. Both, product and process, have to be object of a effective management system”

da R.D. Archibald, “Managing High-Technology Programs and Projects”, New York,Wiley, 1976.


What is a project?

• Every non-routine job…

• …finalized to achieve specific operative results…

• …with some costraints of:– time

– cost

– quality

• …involving several units or roles belonging of different function, temporary joined in a inter-functional team.

Project definition


• What is a process?

Perf. index 1

KPI

INPUT OUTPUT

Target/ customer

OWNER

Organized set of activities and decisions, finalized to create an output requested by a customer, who assign a defined valute to it

Project definition

Perf. index 2Perf. index n…

ACTIVITY ACTIVITY ACTIVITY ACTIVITY ACTIVITY


• Project like a impulse process

Project

Single outputEsplicit targetDefined timeParallel interdipendences

Impulse process

Process

Repetitive and standardizeImplicit targetsPermanentSequntial interdipendences

Flow process

Project definition


• Projects and processes – some samples

Impulse process

Flow process

Internal customer

Esternal customer

ResearchOrganization innovationManagement innovation

Marketing activitiesProduct development

Internal productionMaintenancePlanningFinance and control

SalesService

Project definition


• Projects and processes – management guidelines

How to control

Focus on

Report standardized

Frequency

Informations

Feed-fwd (forecast)

Effectiveness (things happen)

Low

On event

Timely

Feed-back (report)

Efficiciency (resources used)

High

Defined frequency

Precise

Impulse processes Flow processes

Project definition


• Processes and projects

Indice perf. 1

Indice perf. 2

Indice perf. 3KPI

INPUT OUTPUT

TARGET

OWNER

PROCESSPROCESS

PROJECTSPROJECTS

TARGETSRESOURCES

PLANNINGTIME

Efficiency improvement

Effectiveness improvement

Project definition


• Tipical business projects are:– A new organizational procedure;

– Implementation of a new cost control system;

– A new production site (facility);

– Production transfer between two facilities;

– A new market conquest;

– A new product market launch;

– Reengineering of a organization structure;

Project definition


Projects:• Have defined target

• Start and end

• Are managed by a specific organization

• Have Projects Managers responsible for their development

• Are defined by specifying starting point, intermediate activities

and final result

• Are single efforts to achieve esplicit targets in a defined time

Project definition


Project = target / time / path / resorces / control /

corrective actions

Resources:

Human

Instruments and tools

Financial

Time

Project definition


The Human Resources: the most precious resource.

• Projects are places where people work together

• The correct spirit/culture to achieve results

together is cooperation

• The “project spirit”: – Taking part in,

– Giving help,

– Achieving the goals with the same individual dignity

Project definition


• Kinds of projects

External customer

Internal customer

Design-to-order projects

Internal services prjs

New product development

Huge innovation

Requests known before (customer says specifications)

Requests unknown before (customer target)

Project definition


Project Management

1. Introductiona. Course purpose

b. Development of business organization





• Old history

“Which of you wishing to construct a tower does not first sit down and calculate the cost to see if there is enough for its completion?

Otherwise, after laying the foundation and finding himself unable to finish the work the onlookers should laugh at him and say, 'This one began to build but did not have the resources to finish.'

Or what king marching into battle would not first sit down and decide whether with ten thousand troops he can successfully oppose another king advancing upon him with twenty thousand troops?

But if not, while he is still far away, he will send a delegation to ask for peace terms.”

(Lc 14, 28-32)

Project Management


• Historic evolution

• The problem to manage projects was born in the ancient in several ways (military, construction, buildings, shipping, etc…)

• Became object of study starting from the end of XIX century (Gantt)• Develops during the WWII due to the war military industry needs (Es:

Liberty ships)• In the middle of the XX century the first formalized tecniques were born

(Pert/CPM) to manage military and aerospace projects • From 60’s some tools enter in the managing system of big industries

(DuPont, Remington Rand, ecc…)• From 80’s extend to another kind of companies and business• In the 90’s became the most common method to manage projects and no-

repetitive activities in business and administration organizations.

Project Management


What is the Project management?

• PM is a method that considers a project like a target to achieve respecting time, cost and quality defined

• PM is a sistemic application of knowledge, capabilities, tools and tecniques to all the project activities to achieve the business targets!

• This requests a balance between:

– Target, time, cost, quality– Needs of who is involved in– Defined and non-defined requests (espectations).

Project Management


Basic elements:

• Setting targets (Goal Setting)

• Setting modals to evaluate results

• Planning activities to achieve results

• Defining resources needed

• Controlling the activities progress

• Setting corrective actions

• Evaluating results

Project Management


The project target:• Is not often easy to define

• Is not often easy to communicate

• If the target is well defined and shared, then the

probabilities to achieve are huge (goal setting)

• A defined target is not easy to modify

• There are primary and secondary targets

• Is very important balance target and timeClip Coach Carter 103-104-105 – Goal setting

Obiettivi sfidanti, ma realistici e raggiungibili- Concordati- Eventuale assegnazione di prioprità- Misurabili secondo criteri specifici definiti a priori- Chiarezza delle condizioni operative necessarie per il conseguimento degli obiettivi- Gli obiettivi complessi: i progetti intersettoriali

Project Management


Project target: must be S.M.A.R.T.

• Specific – target must be specific and no generic• Measurable – target must be measurable with

numbers • Achievable – target must be achievable; impossible

missions are non admitted! • Relevant – target must be important for business

AND for people involved in• Timed – target must be referred to a time limit

Project Management


Results evaluation (terms/guidelines):

• Quality of results (compared with specifications)

• Forecasted time respect

• Resources used in a correct way

• Satisfaction of who was involved in the project

Project Management


Planning:

• Planning is the main PM tool

• Planning is used to forecast e anticipate events and activities

in order to prepare the team to face of in the better way

• Planning allow to understand the impacts of un-forecasted

events and to choose the correct action to fix

• Planning allow to be flexible because is a strong What-If tool

Project Management


Project Management

1. Introductiona. Course aim

b. Business organization development





Conditions to manage projects

Why a lot of projects fail?

• Why a lot of projects don’t respect timing?

• Why a lot of projects have a bigger cost than forecasted?

• Why a lot of projects have a poor results?

• Why a lot of projects end somewhere in the middle of their

life?

What is so difficult in the project management???


• If some basic conditions are respected, we can reduce the failure

probability.

• Those conditions may belong to two classes:

– RATIONALRATIONAL – means the set of rules and methods to manage projects;

and concern the fondamental variable: targets, resources, skills, tools,

etc…

– RELATIONSHIPRELATIONSHIP – PM is a organization method that exalts the

ralationship dynamics (work with…), so the things connected with the

teamwork, relations between people and with external funcions,

enviroment, market, customer, etc…



Effectiveness Efficiency

People

Activities

Structure

Tools

Organizational enviroment



RATIONAL DIMENSION = we need to define:

• Targets – What we have to do?

• Time – When we have to end?

• Activities – What is the sequance of activities to achieve the target?

• Financial resources – How much money will cost?

• Human resources – Who will do the activities?

• Control – How can we measure the project progress?

• Corrective actions – What we can do when something of un-forecatsed will

happen?

• Final result – What product/service will born from the project?

• End – When we can say the project is ended?

• Result evaluation – Who and how will evaluate results?



RATIONAL DIMENSION = The Plan

Activities map

• Planning is the tool that allow us to set in a formal way all the activities we

need to manage the project and achieve the target. The plan allow us to

control milestones, deliveries, responsabilities (who does what), progress

(delay, advance) and is the basis for all decisions about the project




Tool to discover and fix problems

• The plan is the most effective tool to discover every potential project

problem or risk and understand the impact toward the final target. It is a very

effective what-if tool to take the best decisions or to define alternative

scenarios.




Communication tool

• The plan is a fantastic communication tool both for who is involved in the

project (allways updated about what to do, who is responsible, when, with

who, costs, ….and the project progress), both for the management and the

external organization. This is a very important thing because someone is

involved in a non-continuous way, if everybody know the “Big picture” of

the project, may be more effective and accurate in answering.

Caso Africa 1942




Planning became an habit

• Often the plan is just a piece of paper…. A beautiful coloured picture in the

wall… Done and forgotten. No one finds it useful.

• The plan must be a live tool, updated with frequency. It is the

organiozational enviroment of the project. It means what, how, when, who of

the project!!

• To build a good project enviroment, is necessary that everybody in the

company knows the planning culture, from the top management.

• Every manager must know the planning tool and technique!!




The planning bodytrap

• Lover planner – the plan is not the target of the project!

• Deus plan – the plan is not untouchable. Planning is necessary to check

what-if, scenarios and alternative choices, so is normal to change it!

• Tenacy (excessive) – the plan represents activities and events, it doesn’t

represent the reality in all its particulars

• Forgotten picture – if the plan is too much complex, it will not be a work

tool, but it will end its days hanged in some wall like a beautiful picture….as

a pop art masterpiece!


Documents

CLAMDA-IM – Project Management Project Management 1.Introduction a.Course aim b.Business organization development c.The “Project”: definition and characteristics