MGT 4330 Project Management

Socioculture Dimension

"The Art" -people skills, shapes project culture, motivates teamwork and personal motivation -leadership, problem solving, negotiation, politics, customer expectations

Technical Dimension

"The Science" -formal, disciplined, logical parts of the process. -Includes planning, scheduling, and controlling projects. -clear project scope statement, work breakdown schedule, deliverables, planning, scheduling, control.

Functional Organization Structure

- A hierarchical organization where each employee has one clear superior, and staff are grouped by areas of specialization and managed by a person with expertise in that area. Advantages: flexible, no structural change Disadvantages: Lack of focus, Poor integration, Slow, Lack of ownership

Matrix Organizational Structure

- A hybrid organizational form of projectized and functional. - Attempt to get strengths of projectized and functional structure. - Team members do project work + departmental work. - Advantages: Efficient, Strong project focus, Easier post-project transition, Flexible - Disadvantages: Conflicts and infighting, Stressful, Slow

Major characteristics of a project

- Has an established objective. - Has a defined life span with a beginning and an end. - Requires across-the-organizational participation. - Involves doing something never been done before. - Has specific time, cost, and performance requirements. -diverse set of resources

Bottom - UP

- More efficient than Top-Down approach - Worker in work package makes estimates

Top-Down Approach

- Setting organizations mission or goals - Top managers - good for macro estimates

Projectized Organizational Structure

- more sophisticated version of dedicated structure - Entire company is organized by projects, project managers have control of project, when project is over, personnel is either assigned to a new project, or need to find a new job. Advantages: Simple, fast, cohesive, cross-functional Disadvantages: Expensive, Internal strife, Difficult post-project transition

Dedicated Organizational Structure

- people focus on one project Advantages: Simple, fast, cohesive, cross-functional Disadvantages: Expensive, Internal strife, Difficult post-project transition

Functions culture plays in an organization

-Helps legitimize the management system -helps create social order -it clarifies and reinforces standards of behavior -it provides a sense of identity

Why do project managers need to understand organization's mission and strategy?

-They must understand their organizations strategy so they can be - Project managers must respond to changes with appropriate decisions and projects and adjustments to current projects. -effective advocates of projects aligned with the firm's mission.

Portfolio of Projects by Types (3) - class exercise?

1. Compliance (must do) projects - 2. Strategic projects - directly support the organization's mission 3. Operational projects - support current operations or improve the efficiency of the system

Project Priority Matrix Levels

1. Constraint - MUST do 2. Enhance - 3. Accept -

5 steps in defining the project

1. Define project scope 2. Project priorities - 3 variables = time, cost, performance 3. Create a work breakdown structure 4. Integrate work breakdown structure in organization 5. Coding of WBS

3 major steps of the Strategic management process

1. Defining what we are doing 2. What we intend to do - setting a goal 3. Formulation of strategy and implementation- How we are going to get there

Improve quality of estimates

1. People 2. Planning horizon 3. Padding estimates 4. Project structure NOT PROFIT

Guidelines for Estimation

1. People familiar to task make estimates 2. Use several people to make estimate 3. Base estimates on normal conditions 4. Use consistent time units 5. Treat each task independent - WBS 6. Do not make allowances for contingencies

Factors influencing the Quality of Estimates

1. Planning Horizon -near future= less uncertainty -far future= more uncertainty 2. Project Complexity 3. People Skill Set 4. Project Structure and Organization 5. Padding Estimates 6. Organization Culture 7. Other (Non project) Factors

6 Components when Writing Project Scope Document

1. Project objective - what, when, where, how much 2. Deliverables - all nouns 3. Milestones 4. Technical requirements 5. Limits and exclusions to set boundaries 6. Reviews with customer

3 Methods of Top-Down Approach

1. Ratio - ex. building a house 2. Apportion - 3. Function Point - Work Count * Complexity Factor and add all of them = Total adjusted work count

3 Methods of Bottom-Up Approach

1. Template - similar to apportion method 2. Parametric - similar to ratio method, but more specific 3. Range-Estimation - use when there is a lot of risk or uncertainty

Know 4 activities of the Strategic Management Process

1. define the organizational mission 2. set long-range goals 3. formulate strategies 4. implement strategies

Five drivers of project management

1. short product life cycle 2. knowledge explosion 3. triple bottom line (planet, people, profit) 4. increased customer focus 5. small projects represent big problems- have an efficient project going on concurrently

4 ways of identifying cultural characteristics

1. study the physical characteristics of an organization 2. Read about organization 3. observe how people interact within the organization 4. interpret stories and folklore surrounding the organization

How to calculate rate of return within payback method

= Annual savings / Initial Project Cost

Work Breakdown Structure (WBS)

A hierarchical listing of what must be done during a project - identifies the work elements of the project. On top = Project - sub deliverables - sub deliverables - sub deliverables On bottom = Work package

Organization Breakdown Structure (OBS)

A structure used to assign responsibility for work packages. - look at slides for this

Define project

A temporary endeavor undertaken to create a unique product, service, or result.

Top down. Method used when project closely follows past project - costs are assigned as percentages

Apportion method

Jose is forecasting project time and cost for constructing a new building by multiplying the total square footage by a given dollar amount. Which of the following methods is he using? A. Ratio B. Template C. Apportion D. Function point E. Learning curve

B. Ratio

Which structure would be most appropriate for developing a new, highly innovative product with strict time constraints?

Dedicated project team

Project life cycle

Defining, Planning, Executing, Closing

The salary of the project director would be an example of what time of cost?

Direct project overhead cost

T or F: One advantage of a matrix project management structure is that it is fast and easy to implement.

False

Work Package

Focal point of the project - identifies how long the project is gonna take, how much it will cost, who is responsible for what.

The structure that manages projects within the existing organizational structure is a _________ organization.

Functional

4 major organization structures

Functional, Dedicated, Projectized, Matrix

Responsibility Matrix includes

Horizontal: Name of team members Vertical: List of tasks Inside Box: Who is responsible for and assisting tasks

Best approach when estimating time and cost of project. When there is Great level of uncertainty.

Hybrid Phase Estimating

How to calculate payback

Initial Project Cost / Annual Savings for each time period

Excel function for NPV

Initial cost (-) + NPV(Rate of Return, Annual Cash Flow)

Top down approach is macro or micro estimates?

Macro Estimates

______ organization is a hybrid form.

Matrix

Bottom up approach is macro or micro estimates?

Micro Estimates

How to Calculate Multi-Weighted Scoring Models

Multiple criteria of the project are listed (qualitative or quantitative), each criteria is assigned a weight of importance

Refining estimates may be necessary for a number of reasons. For example, design flaws being revealed after the fact, extreme weather conditions, and accidents occurring are good examples of

Normal conditions not applying

Two financial models:

Payback and NPV

Disadvantage of projectized organization

Poor integration

Who has more power under strong matrix?

Project Manager has more power.

Difference between project and operations

Project is NOT routine or repetitive work. Operations are continues and repetitive.

A project team that operates with a full-time project manager as a separate unit from the organization is structured using ______________ organization.

Projectized

Assigned project manager for each of the five teams. What structure is being used?

Projectized structure

Rob is responsible for estimating a work package that has a significant amount of uncertainty associated with the time and cost to complete. Due to the uncertainty involved he will be making a low, an average and a high estimate. Rob is using which estimating approach?

Range estimating

If NPV is negative then...

Reject it!

Functional organization is the ideal structure for a ....

Small organization

Matrix Arrangement

Stressful, dysfunctional conflict

The bottom up approach for estimating times and costs that uses costs from past projects that were similar to the current project is known as?

Template Method

Who is responsible for determining how tasks will be done in a weak matrix project management structure?

The Functional Manager

Types of Cost

Total Direct costs - direct labor costs+ direct overhead costs (% of direct labor costs) Total Indirect costs - General and Admin overhead costs (% of total direct cost)

T or F. Projectized form of project management structure is a good choice when completion is important and the project needs to be implemented without directly disrupting ongoing operations.

True

T or F. The approach to estimating project time and cost that begins with an overall estimate for the project and then refines estimates for various stages of the project as it is implemented is known as phase estimating.

True

What describes the consensus method?

Uses pooled experience of senior and/or middle managers to estimate the total project duration and cost

Different Matrix Forms

Weak- Authority of the Functional Manager has power over the Project Manager who indirect authority Balanced- Project Manager sets the overall PLAN and the Functional Manager determines HOW work should be done. Strong- Project Manager has broader control and Functional departments act as subcontractors to the project.

Project life cycle stage 1. Defining involves...

goals, specifications, tasks, responsibilities

Project life cycle stage 2. Planning involves...

schedules, budgets, resources, risks, staffing

Project life cycle stage 3. Executing involves...

status reports, changes, quality, forecasts

Project life cycle stage 4. Closing involves...

train customer, transfer documents, release resources, evaluation, lessons learned