Professional Documents
Culture Documents
• Expansion of knowledge: Solution to Problems
Day 1 • Product design integrated & inherent to
1. Projects in Contemporary Organizations production & distribution systems to satisfy
2. Project Proposals
j p demand for more complex & customized
demand for more complex & customized
3. Projects Feasibility products & services
4. Project Charter
• Worldwide markets force: what, where, when,
5. Project Scope
& how to produce & distribute output
A Special Presentation for
NESPAK
28 June 2010
Emergence of Project Management Brief History of Project Management
• Project management practiced for thousands
• Combination of all three forces of years: Egyptian epoch
• Mid‐1950's: application of formal project
– require use of teams to solve problems that used management tools & techniques to complex
to be solvable by individuals projects.
• Henry Gantt is considered to be the forefather
– greatly increases complexity of goods & services
greatly increases complexity of goods & services p j g , p g
of project management, as his planning and
organizing methods with the use of the bar
produced; & complexity of processes used to charts as a project management tool
recognizes him as the foremost precursor for
produce them contemporary project management practices
employed today.
• Thus need for more sophisticated systems to • Modern project management methods had
their origins in two parallel but different
control both outcomes & processes problems of planning and control in projects in
the United States.
Polaris Missile Project E.I du Pont de Nemours Company
• U.S Navy: control of contracts. • Construction of major chemical plants in U.S.
• Research, development work and manufacturing of parts that were
unique and had never been previously undertaken. • Unlike the Navy Polaris project, these
• Characterised by high uncertainty. Hence, completion times were construction undertakings required accurate time
based on probabilities. & cost estimates.
• Time estimates based on optimistic, pessimistic
p ,p and most likely. 3
y
time scenarios mathematically assessed to determine the probable • Methodology developed originally referred to as
Methodology developed originally referred to as
completion date. This procedure was called program evaluation project planning & scheduling (PPS); required
review technique (PERT). realistic estimates of cost & time, and thus more
• Initially, the PERT did not consider cost; later included using the definitive approach than PERT.
same estimating approach as with time.
• PERT was found (and still is) to be best suited for projects with a • PPS later developed into critical path method
high degree of uncertainty reflecting their level of uniqueness. (CPM) that became very popular in construction
industry.
• PERT & CPM increasingly popular in private and public
sectors, in 60’s & 70’s
• Defence Departments in many countries, NASA, & large‐scale
4 Periods in Development of
engineering and construction companies world wide applied Project Management
PM principles/tools to manage large budget projects
PM principles/tools to manage large budget projects.
• Computer Packages for PM developed in 70’s; costly
• 80’s; PCs & low cost PM software
• Manufacturing & software sectors adopted sophisticated
project management practices as well
• 1990s; PM theories, tools & techniques widely received.
• PRINCE2 & PMI Models
Prior to 1958 1958‐1979
• Craft system to human relations. Evolution of technology, • Application of Management Science. Significant technology
such as, automobiles & telecommunications shortened advancement, such as, Xerox. CPM & PERT introduced.
the project schedule. For instance, automobiles allowed
effective resource allocation & mobility, whilst the Development of computer technology. Computers from
telecommunication system increased the speed of mainframe to the mini‐computer; Microsoft founded in
communication. 1975. Project management software companies, including,
• Furthermore, the job specification which later became Artemis (1977), Oracle (1977), & Scitor
( ), ( ), Corporation (1979).
p ( )
the basis of developing the Work Breakdown Structure
(WBS) was widely used & Henry Gantt invented the
Material Requirements Planning (MRP)
Gantt chart. Examples:
Examples: – Polaris missile project ;that had the objective of delivering
–
–
Pacific Railroad in 1850‘s
Construction of Hoover Dam in 1931‐1936; 5,200 workers, still one of
nuclear missiles carried by submarines, known as Fleet Ballistic
the highest gravity dams in the U.S. generating four billion kilowatt Missile. Successfully launched its first Polaris missile in 1961;
hours a year; &
– The Manhattan Project in 1942‐1945; pioneer research &
– Apollo project; sending man to the moon; &
development project for producing the A‐bomb, 125,000 workers &
costing nearly $2 billion.
– E.I du Pont de Nemours chemical plant project
1980‐1994 1995‐Present
• Production Centre Human Resources. • Creating a New Environment. Internet provided fast,
Revolutionary development in the information interactive, & customized new medium that allows people
management, PC & associated computer to browse, purchase, & track products & services online
communications networking facilities. Low cost instantly. Firms more productive, more efficient & more
PM software for PCs. client oriented; allows automatic uploading of data so that
Examples: anyone around the globe with a standard browser can:
y g
– England France Channel project, 1989 to1991. • Input the most recent status of their assigned tasks;
International project, involved two governments, several
financial institutions, engineering construction • find out how the overall project is doing;
companies, & various organisations. Language, use of • be informed of any delays or advances in the schedule; &
standard metrics, & other communication differences
needed to be closely coordinated; • stay "in the loop" for their project role, while working
– Space Shuttle Challenger project, 1983 to 1986. Disaster independently at a remote site.
focused attention on risk management, group dynamics,
& quality management
– xv Calgary Winter Olympic of 1988, successfully applied
project management practices to event management.
Projects & Processes are often
Program & Project
contrasted
• Sometimes achieving a certain organizational • Process: day‐to‐day working of an organization
objective may not be possible through one
project.
• Programs involve number of interrelated
g • Project: used to describe activities outside the
projects. d
day‐to‐day working of an organization
d ki f i i
• Example: • In fields such as Software, Construction,
– Economic Development Programs Research; day‐to‐day working is often Projects
– Earthquake reconstruction of schools in Bakot
Managers in Projects Management Functions
• Line managers ‐ responsible for activities making direct contributions to
production of organization’s basic goods or services. Process of mgmt consists of 4 basic managerial
• Staff managers ‐ use special technical expertise to advise & support the functions
efforts of line workers.
• Functional managers ‐ responsible for one area of activity, finance, • Planning
marketing, production, personnel, accounting, or sales.
• Gen mgrs ‐ responsible for complex organizational unit that ‐ many areas • Organizing
of functional activity
• An administrator ‐manager, who works in a public or non profit • Controlling
organization.
• Leading
Project mgrs cannot perform their tasks well unless they have:
Understanding of & are responsive to,
many elements of external environment – economic, technological social,
political & ethical factors that effect their areas of operations.
Planning Organizing
• Basic activity of mgt, Mgr at every level do planning
• Determined through Objectives of organization & establishment
• Involves establishing intentional structure of
of appropriate Strategies” for achieving them. roles for people to fill in organization
• Strategy provides‐ with direction, A sense of unity of purpose –
integrative blueprint for org
• Organizing involves turning plans into actions
• Strategy serves to obtain a match b/w external environment & • After developing strategy, & plans to achieve
Af d l i & l hi
internal capabilities.
the objective they need to develop an
• intended to achieve a sustained competitive advantage over
competitors. organization to accomplish objectives
• Planning Involves selecting “missions & objectives” & actions to
achieve them.
Controlling Leading
• Measuring & correcting individual & organizational • Influencing people‐ so that they will contribute to
performance to ensure that events conform to plans. organization & group goals
• Predominantly, to do with interpersonal aspect of
• 3 elements: managing
– Establishing Standard of Performance • In project Most important problems arise form people
In project Most important problems arise form people
– Info that indicates Deviation b/w actual vs established – their desires & attitudes, their behavior as
standards individuals & in groups
– Actions to Correct performance that doesn’t meet • Effective project mgrs also need to be effective leaders.
standards • Leadership implies follower‐ship & people tend to
• Facilitates accomplishment of plans. follow those who offer means of satisfying their own
needs, wishes, & desires.
Planning
The Project Manager
• Setting performance
objectives & deciding
how to achieve them • Management (Expertise, Tools, HRM, QM …)
• Conflicts
The • Visibility
Organizing Controlling
• Arranging tasks, people, &
other resources to
Management
M t • Measuring performance
& taking action to
• Risks
accomplish the work
Process ensure desired results
• Teams
• Managing Stakeholders, Schedule, Budget,
Plan
Leading
• Inspiring people to
work hard to achieve
• Cross Functional management
high performance
Changes in Managing Organizations Some Definitions
From To • A project is a sequence of unique, complex &
Industrial Society Information Society
Forced Technology High Technology
connected activities having one goal or
National Economy World Economy purpose & that must be completed by a
Sh t T
Short Term L
Long T
Term
Centralization Decentralization specific time, within budget, & according to
Institutional Help Self‐Help
specifications.
Representative Democracy Participatory Democracy
Hierarchies Networking
West East
Either/OR Multiple Option
What is a Project ? Project Management Consists Of
• Set of people & other resources temporarily
assembled to reach specific objective, Hints & Tips
Processes
1
normally with fixed budget & time period 2
Techniques
3
(Graham 1985) 7
Project Characteristics Project Characteristics..
Unique Activities One Goal
• The project has never happened before & will never happen again
under the same conditions. (Uncertainty & Risk) • Projects must have a single goal as compared to a
program
Complex Activities
• Not simple, repetitive acts, such as mowing the lawn, running the Specified Time
weekly payroll, washing the car, or loading the delivery truck.
(Expertise Required) • Projects have a specified completion date
Connected Activities
Within Budget
• There is some order to the sequence in which the activities that
make up the project must be completed. Connectedness follows
from the fact that the output from one activity is input to another. • Projects also have resource limits (people, money,
(Interdependencies) machines)
Project Characteristics... Project is ….
According to Specification • Organized work for a predefined goal
• Certain level of functionality & quality expected. requiring resources & efforts, a unique (thus
may be self‐imposed or customer‐specified, & are risky) venture having budget & schedule.
fixed for a given time
• Its success can be measured in terms of how
Its success can be measured in terms of how
Require Efforts of people closely it comes to meeting goals within set
parameters.
• Human Resource Management
• Once complete, it ceases.
Measures of Quality will apply
• Quality Management
Some Humor!!!!!
ACTIVITY 1
• Enthusiasm
• Disillusionment
• Panic Think about how you might identify
• Search for the guilty
Search for the guilty whether or not a project is successful
whether or not a project is successful.
• Punishing the innocent List those items that you would look at to
• Praising those not involved determine a projects success.
SCHEDULE
For analytical purposes, the time required
to produce a deliverable is estimated
• Constructing firm: construct • A R&D Department in a chemical • Marketing group of a company: using several techniques. One method is Scope are requirements specified to achieve
access roads & a group of small firm may be asked to devote time prepare the launch of new to identify tasks needed to produce the the end result. The overall definition of what
industrial units on derelict road to exploring possibilities of product. deliverables documented in a the project is supposed to accomplish, and
to generate jobs. developing new products using a • May involve marketing research, work breakdown structure or WBS. a specific description of what the end result
• May involve surveying, new polymer. planning & executing advertising The work effort for each task is should be. A major component of scope is
demolition, clearing rubble,
, g , p g , g
campaign, organizing g estimated & those estimates are the quality of the final product.
product
removing trees & shrubs, promotional events & press
rolled up into the final deliverable
leveling, laying out roads, release & liaising with
foundations, raising buildings. wholesalers & retail outlets. estimate.
COST
QUALITY SCOPE
Costs include: resource costs, labor rates, material rates, risk management (i.e. cost contingency),
Earned value management, plant (buildings, machines, etc.), equipment, cost escalation, indirect costs,
and profit. The economic cost that must be considered; worker skill & productivity which is
calculated by variation to project cost estimates.
Project Initiation Product vs. Project Management
Identify Needs
• Project Manager focuses – Project Constraints
Establish Objectives & Constraints • Product Manager not willing to admit ‐
Production line will ever end.
Establish Scope
Undertake Studies Appoint
pp p
project
j Mgr
g • Product Manager wants product to be long
Product Manager wants product to be long‐lived
lived
Generate Alternatives & profitable .
Approximate Estimating Identify Stakeholders • Even with less demand for product Prod
Establish Feasibility
Manager looks to keep Product alive.
Proceed
Getting the Olympic Flame, known as the went out. The caravan included: 50 cellular
Olympic Torch Relay, to the Salt Lake City, telephones; 60 pagers; 120 radios; 30 cars;
Utah, USA 2002 Olympic Games promised to 10 motorcycles; and clothing for 10,000
Project Management in Practice‐1 be no simple matter. Generally, the Torch
Relay has gotten longer and more complex
runners, 10,000 volunteers, as well as 2,500
escort runners.
with every Olympic event. This complexity is
driven by the realization of host‐country However, the torch relay is also a major
citizens that it is a rare opportunity to have marketing campaign, primarily for the
the Olympic torch pass through your relay's sponsors. Thus, accompanying the
hometown and the corresponding goal of Atlanta‐bound caravan were trucks
the Olympic Committee to touch as many hawking Olympic memorabilia: t‐shirts,
lives as possible in a positive way. sweatshirts, baseball caps, tickets to the
soccer matches, and on and on. In addition
Planning for the 1996 Atlanta Olympic to retail commercialism, a number of
Torch Relay took two years, cost over $20 companies were piggybacking on the torch
million, and involved an 84 day, 42 state relay to further their own commercial
campaign using 10,000 runners to carry the interests: IBM, Motorola, Bell‐South,
torch for 15,000 miles! Accompanying the Texaco, BMW, Lee, Coca‐Cola, and so on.
runners was a 40‐vehicle caravan carrying AU in all, a very successful relay!
security officers, media personnel, medical
personnel, computers, telecommunications
The Olympic Torch Relay Project gear, clothing, food, and spare lanterns
Source: G. Ruffenach, "Gelling the Olympic Flame to Atlanta Won't be a Simple
Cross‐Country Run," The Wall Street Journal, February 26, 1996.
Project Selection Models Project Management Lifecycle
• Non‐numeric Models
– The sacred cow
– The operating necessity
– The competitive necessity Executi
– The product line extension ng
vity
P
Process
Level of Activ
– Comparative benefit model
• Numeric Models: Initiatin Plannin
g g
– Payback period Proces Proces
Controllin Closing
g Process Process
– IRR s s
– Discounted cash flow, NPV
– Benefit Cost Ratio
Start Time Finish
Project Life Cycle – Example Phases The Project Lifecycle
Concept &
Proposal
Development
Implementation
Verification
Termination
Start Finish
Time
Risks During Project Lifecycle Risks During Project Lifecycle..
Project Management in was complicated because the bilevel, multi
span bridge passed within six feet of heavily
Most of the demolition was accomplished
using a breaker on the upper deck of the
populated buildings, ran in the vicinity of both bridge and a pulverizer on the lower deck.
Practice‐2 overhead and underground utilities (gas,
water, electric, and sewer lines), and crossed
First the road‐way slab was demolished, then
the girders were pulverized and all the debris
both commercial and residential areas with pushed down to the ground. Then the cap,
strict vibration and sound level restrictions. columns, and restrainers were demolished.
Thus, managing the demolition while ensuring This process continued along the length of
th
the safety of both the on‐going population and
f t f b th th i l ti d th b id
the bridge until the entire distance was
til th ti di t
existing facilities was a major challenge. demolished. Constant monitoring was con‐
The primary tools for conducting such a ducted for noise, vibration, safety, and
delicate, but dangerous operation were procedures throughout the project.
detailed planning and thorough Continuous communication was made with
Demolishing San Francisco’s communications with all related parties. An utility companies and others concerned with
extensive Demolition Plan was required and a particular segment being demolished. In
Bridges Safely included:
‐ a Code of Safe Practice describing personal
this fashion, the entire viaduct was
demolished with no major accidents or
protective equipment for the workers, as well injuries.
as a maintenance plan for the equipment; Source: O. Y. Abudayyeh, "Safety Issues in Bridge Demolition Projects: A Case
‐ a demolition sequence plan (sequence of Study," PM Network. January 1997, pp. 43‐45.
work, staging, equipment location, restraints,
Questions on Project Management in
Class Discussion/Assessment
Practice 2
• What was the main consideration in this • Give several examples of projects found in our society,
avoiding those already discussed in the chapter.
demolition project? • Describe some situations in which project management
• How would a demolition project differ from a would probably not be effective.
more common construction project? Consider
p j • How does the rate‐of‐project‐progress chart (Fig. 1‐3) help
a manager make decisions?
a manager make decisions?
performance, schedule, and budget. • Expound on the adage, “Projects proceed smoothly until 90
• Would the life cycle for this project be S‐ percent complete, and then remain at 90 percent forever.”
• Discuss the duties and responsibilities of the project
shaped or the right half of a U or something manager. How critical is the project manager to the success
else? How about the life cycle for a freeway of the project?
construction project? • Would you like to be a project manager? Why, or why not?
Class Discussion/Assessment.. 9 Knowledge Areas
• Discuss why there are trade‐offs among the three prime CORE FUNCTIONS Tools and
objectives of project management. Techniques
• Why is the life cycle curve often “S” shaped? Scope Time Cost Quality
Mgt Mgt Mgt Mgt
• How might project management be used when doing a
major schoolwork assignment?
• Why is there such a pronounced bend in the curve of Figure
Wh i h h db di h f Fi
1‐2?
• Which of the identified project attributes in Section 1.1 are Stake Project Integration Management Project
Success
always present? Which are simply frequently present? holders
needs
• Describe a project whose life cycle would be a straight line and
from start to finish. Describe a project with an inverse‐S life expecta
cycle. tions HR Comm Risk Procur
Mgt Mgt Mgt Mgt
FACILITATING FUNCTIONS
Use of Management Functions at different
Organizational Levels hierarchical levels
Top
Managers
Expertise
Authority
xpertise
PLANNING
Middle
mber
Managers
g
Technical Ex
Functional A
Managerial E
Num
ORGANIZING
First-Line Managers
LEADING
Operatives
CONTROLLING
Engineering
Accounting
Marketing
Finance
R&D
HR
Key Players in a Project
• Project manager. The person responsible for managing the
project.
Technical • Customer/user. The person or organization that will use the
Skills
project’s product. There may be multiple layers of customers.
For example, the customers for a new pharmaceutical product
can include the doctors who prescribe it, the patients who
i l d h d h ib i h i h
Human
take it and the insurers who pay for it. In some application
Skills
areas, customer and user are synonymous, while in others,
customer refers to the entity acquiring the project’s product
and users are those who will directly utilize the project’s
Conceptual
Skills
product.
• Performing organization. The enterprise whose employees
are most directly involved in doing the work of the project.
First Line Middle Top
Mangers Mangers Mangers
Organizational Planning
• Project team members. The group that is performing the
work of the project. • Mission Statements and Projects
• Project management team. The members of the project team
who are directly involved in project management activities.
• Sponsor. The person or group that provides the financial • Change from above, Strategic Planning
resources in cash or in kind for the project
resources, in cash or in kind, for the project.
• Influencers. People or groups that are not directly related to
the acquisition or use of the project’s product, but due to an
individual’s position in the customer organization or • Change from below
performing organization, can influence, positively or
negatively, the course of the project.
• PMO. If it exists in the performing organization, the PMO can
be a stakeholder if it has direct or indirect responsibility for • Change from outside
the outcome of the project.
STRATEGIC PLANNING
QUESTIONS TO EXPLORE OUTCOME
What are we here to
Mission Statement
do?
SWOT Analysis
SWOT Analysis
What are we now? Market Analysis, Forecasting,
PEST, Technological forecasting
What do we want
Objectives
to achieve?
How will we go about Strategies
achieving it? Plans
Enhanced SWOT Analysis
How is a Pareto Chart constructed? ACTIVITY 3
Step 1 ‐ Record the data • You are part of a team responsible for the
Step 2 ‐ Order the data quality of the BOQ. You want to improve the
Step 3 ‐ Label the axis service you provide but are not sure where to
begin or where to concentrate your efforts
begin or where to concentrate your efforts.
Step 4 ‐ Plot the bars You decide to keep track of the complaints
Step 5 ‐ Add a cumulative line, title, legend, and received over a three‐month period.
date • Rank order your data in an analysis sheet and
draw a Pareto Chart.
Now answer the following questions:
1. Does the Pareto Principle apply?
2. Where should you concentrate your efforts?
3. Do your proposed efforts pass a sanity
check? In other words, do the top problems
h k? I h d d h bl
really stand out as most important to you
and your customers?
Answer Activity 3 Answer Activity 3
• Nominal Group Techniques
• Affinity Diagrams
Positives: People Involvement, Clarity of
Purpose
Project Conception Requirements for the Project
Life Is A Project
Project Selection
95
Rapid Adoption of Project Problems in Organizations managing
Management means: Multiple Projects
• there are many projects that fall outside the • Delays in one project delay other projects
organization’s stated mission; because of common resource needs or
• there are many projects being conducted that technological dependencies
are completely unrelated to the strategy and
are completely unrelated to the strategy and • The inefficient use of corporate resources results
The inefficient use of corporate resources results
goals of the organization; and in peaks and valleys of resource utilization
• there are many projects with funding levels • Bottlenecks in resource availability or lack of
required technological inputs result in project
that are excessive relative to their expected
delays that depend on those scarce resources or
benefits.
technology
Success with Project Management
Project Management Maturity
controlled &
measured
processes, results
some processes
more in line with
plans Adoptive Project Management in Practice
exist, Managed
inconsistent continuous
management
management, improvement in
Organized
unpredictable
results standardized
processes,
success is normal,
Implementing Strategy through
Abbreviated processes, more
predictable results
performance
keeps improving Projects at Blue Cross/Blue Shield
Ad‐hoc
disorganize
d,
accidental
successes
& failures
Since strategic plans are usually developed at These may include new product development, Questions ‐ Project Management in
the executive level, implementation by middle upgrading information systems, or
level managers is often a problem due to poor implementing facility automation systems. Practice
understanding of the organization’s CPAG also works with the project teams to
capabilities and top management’s
expectations. However, bottom‐up
develop their plans, monitoring activities, and
reports so they dovetail with the strategic
• Is the new project management approach to
development of departmental goals and intentions. implementing strategy bottom‐up or top‐
future plans invariably lacks the vision of the The primary benefits of the system have been
overall market and competitive environment. that it allows: down?
At Blue Cross/Blue Shield (BC/BS) of Louisiana, • senior management to select any corporate
thi
this problem was avoided by closely tying
bl id d b l l t i i iti ti
initiative and determine its status;
dd t i it t t
• What is the role of projects and their
What is the role of projects and their
project management tools to the • PMs to report progress in a relevant, management in this new process? That is,
organizational strategy. systematic, timely manner;
The resulting system provided a set of checks • all officers, directors, and managers to view wouldn’t a functional approach have worked
and balances for both BC/BS executives and
project managers. Overseeing the system is a
the corporate initiatives in terms of the
overall strategic plan; and
just as well?
newly created Corporate Project
Administration Group (CPAG) that helps senior
• senior management to plan, track, and
adjust strategy through use of financial
• What other benefits might you expect from a
management translate their strategic goals project data captured by the system. system such as this?
and objectives into project management
performance, budget, and schedule targets.
Diab P (98)
Project Selection
Project Proposals
• Project selection is the process of evaluating
individual projects or groups of projects,
A Special Presentation for
• and then choosing to implement some set of NESPAK
28 June 2010
them so that the objectives of the parent
j p
organization will be achieved.
• The proper choice of investment projects is
crucial to the long‐run survival of every firm.
• Daily we witness the results of both good and
bad investment choices.
Types of Proposals
Types of Proposals
• External • Pre‐proposals: requested to minimize applicant's
effort in preparing a full proposal. Usually in the
– Solicited proposals: submitted in response to a specific
solicitation issued by a sponsor. Such solicitations, form of a letter of intent, letter of enquiry, brief
typically called Request for Proposals (RFP), or Request abstract/summary, cover letter or a concept paper.
for Quotations (RFQ)
– Unsolicited proposals: submitted to a sponsor that has
• Continuation or Non‐Competing proposals: confirm
not issued a specific solicitation but is believed by the
investigator to have an interest in the subject the original proposal and funding requirements for
which the sponsor has already provided funding for
an initial period.
Proposal Development Model
(Grantsmanship Center in LA)
Proposal Contents Based Upon this Proposal Writing Hints
Model
• Be prepared to spend a lot of time on your
1. Summary proposal (Like publishing an article)
2. Introduction • Before writing, thoroughly read the guidelines for
3. Issues definition the program to which you're applying
4. Objectives • Before you submit a proposal to a granting
5. Methods agency, have a draft "critiqued"
6. Evaluation
7. Future funding
8. Budget
Proposal Writing Hints
• Must convince the reviewers of four things:
– Project is of sufficient importance and significance to
merit support, Questions
– A thorough review of literature in the field and have a
well‐designed plan of work
– Project is of manageable size and can be carried out
?
within the time frame of the proposal
– You are competent to complete the project
successfully
Day 1
Project Feasibility Decision Outcome
• Accept project
Potential & Project
P j • Reject
j project
j
• Delay project
Ongoing Selection
• Refocus project
A Special Presentation for Projects Decision • End-user
NESPAK Development
28 June 2010 • Proof of concept
Current
Org Evaluation
Environment Criteria
Tech Feasibility
Types of Feasibility
First systematic
investigation of Project Design Viability.
• Technical Feasibility Foundation of all other FS.
• Managerial Feasibility
• Economic Feasibility - Assessment of a Project- Capabilities.
• Financial Feasibility -Investigation of Technical & Physical Parameters
• Cultural Feasibility
• Social Feasibility TF Reviews:
• Safety Feasibility -Technical Capability of HR
• Political Feasibility -Capability of Available Technology
• Environmental Feasibility
• Market Feasibility Foreign consultants Role –LDCs
• Schedule Feasibility “Too rigid, & Advanced Tech Spec”
- Cannot be met by Country.
- Question is “Can it be built?”
Technical Feasibility (TF) Technical Feasibility (TF) Contd..
Social Feasibility
Project Charter
• Formally recognizes the existence of a project
Project Charter • Refers to the business need the project is
addressing
• Describes the product to be delivered
• Gives the project manager the authority to apply
resources to the project
160
Project Charter Charter is Developed as Result of:
Sometimes, Project is not formally
– Market demand (e.g. SUZUKI wants more fuel‐
Chartered & initiated until efficient cars in gasoline shortage)
completion of:
– Business need (Training company authorizing
1. Needs Assessment,
Needs Assessment, new course to increase
i revenues))
2. Feasibility study,
3. Preliminary plan, – Customer request (building new sub‐station to
serve new industrial park)
or some other equivalent form of analysis.
Project Charter, directly/reference should address:
Charter is Developed as Result of:
– Technological Advance (authorizing a proj to – Summary milestone schedule
develop faster, cheaper, & smaller laptop)
– Stakeholder influence
– Legal Requirement (paint manufacturers
– Functional org their participation
authorizing proj to establish guidelines for
handling of toxic materials) – Organizational, environmental
O i ti l i t l & external
& t l
assumptions
– Social Need (NGO authorizing a project to provide
sanitation education to communities suffering – Organizational, environmental & external constraints
from high rates of Cholera) – Business case justifying proj, including Return on
Investment
– Summary Budget
Project Scope Scope is:
• Project Scope Management includes the processes “What the Project Contains or Delivers”.
required to ensure that the project includes all the
work required, and only the work required, to When starting to plan the
complete the project successfully. Managing the
project scope is primarily concerned with defining and “Scope of the Project”:
controlling what is and is not included in the project
controlling what is and is not included in the project. Think about the BIG PICTURE first!
• In the project context, the term scope can refer to: At this level - Best to Concentrate on:
• Product scope. The features and functions that
characterize a product, service, or result; and/or Major Deliverables &
• Project scope. The work that needs to be accomplished Not get bogged down with detail.
to deliver a product, service, or result with the Whats IN, Whats OUT!
specified features and functions.
Scope Statement Scope Types
A written statement includes:
Horizontal scope:
• Project Justification • Cumulative coverage of units or subunits at
• Project Objectives the same level of detail.
• Major Deliverables • It is well defined when all the units are
• Criteria: Project/ or Phase Successfully defined
Completed Vertical scope
• Completeness of scope of the respective units
and subunits.
• It is well defined when all subunits & Detail of
their sub‐units are well defined.
Product vs. Product Scope
• Product scope – The features and
functions that are to be included in a
product or service
• Project scope – The work that must be
p
done in order to deliver a product with the Why is Scope Important?
specified features and functions
• Successful completion of product scope is
measured against the requirements;
project scope is measured against the plan
177
Scope Definition Difference in Scope, Objective/Goals?
Goals/Obj:
What business wants to achieve thru Proj
• Detail with which a Proj‐ defined that is
starting from the: Define WHY client wants to u/take Proj.
Scope defines size of Project.
• “Overall functionality of Project” to the “Last
definable functional element in descending
definable functional element in descending including areas as
g
order”. a. Departments,
• This process starts in “Conceptual Phase” b. Geographic loc,
c. Deliverables,
d. Features & functions. Often scope is ltd by
“Schedule & Budget” constraints.
Scope Change Change in Functionality
Any change, • Change in Capacity
at any stage in the functionality of the • Change in Quality
project
j t • Complete change
Complete change
or facility is termed
a scope change
Change in Capacity Change in Quality
• Can be either Addition or Subtraction • This kind of a change is an addition or
in: subtraction of a functionality to the
Span of Work span of work:
1. Increase or decrease in length of Rd Examp: Providing or deleting dividers,
2. Increase/decrease in no. of Toll booths, extra markings, & guard rails in
Rd works, or providing or deleting facing
Standardized housing units to be
in a building
constructed
SCOPE CREEP
• Uncontrolled changes in a project’s scope.
Occur when scope of a project is not properly
defined, documented, or controlled.
• It is generally considered a negative
It is generally considered a negative
occurrence to be avoided.
• Scope creep (also called requirement creep,
feature creep, & sometimes kitchen sink
syndrome) in PM is: