ISE380

Project Management
Elif GLFIRAT GKE
Copyright 2009 John Wiley & Sons, Inc.

Personal Background

Education

Executive MBA ( Ko University 2007) BS in Industrial Engineering (Boazii University 1999) Business Analysis Manager, Netsis (2011-now) Operations IT Manager, British American Tobacco, (2008 2010) Business Analyst & Project Manager, Ford Otosan, (2000 2008) OSD (Automotive Manufacturers Association) Representative for Odette Organization, (2007)
Ch #-2

Career History

Rules of Engagement

Syllabus Review Attendance Engagement Speak English all the time Questions are welcome

He who asks is a fool for 5 minutes, he who does not stays a fool forever (Chinese Proverb)

Contact elif.gulfirat@gmail.com, put ISE380 on the subject line

Ch #-3

Chapter 1

The World of Projects

Copyright 2009 John Wiley & Sons, Inc.

Introduction

Much of Project Management (PM) developed by the military

Manhattan Project US Navys Polaris program NASAs space program

PM has found wide acceptance in industry since then.

Ch #-5

Introduction

Main forces driving acceptance of PM:

Exponential growth of human knowledge Growing demand for a broad range of complex goods and services Increased worldwide competition

All of these contribute to the need for organizations to do more and to do it faster

Ch #-6

Introduction

PM provides an organization with powerful tools that improve:

its ability to plan, implement and control its activities, the ways in which it utilizes its people and resources.

Ch #-7

Introduction

In the past, most projects were external to the organization

Building a new skyscraper Designing a commercial ad campaign Launching a rocket Developing a new product Opening a new branch Improving the services provided to the customers

Internal projects

Ch #-8

Introduction
http://www.youtube.com/watch?v=Hdpf-MQM9vY

Ch #-9

Projects Tend to be Large

Projects tend to be large

Atatrk Dam Project (GAP) The Bosphorus Bridge The Marmara Tunnel Izmir Metro The Third Bosphorus Bridge Development of IPhone Flying: balloons planes jets rockets reusable rockets
Ch #-10

Projects are getting larger over time

PM Also Getting Smaller

More people are seeing the advantages of project management techniques The tools become cheaper and easiy available The techniques are becoming more widely known and accessible

Ch #-11

Main Goals of Project Management

Performance Time Cost

These three goals are interdependent.

Ch #-12

Direct Project Goals: Performance, Cost, Time

Figure 1-1
Ch #-13

Four Dimensions of Project Success

1. 2.

3.
4.

Project efficiency Impact on the customer Business impact on the organization Opening new opportunities for the future

Ch #-14

Project Management Institute (PMI)

The Project Management Institute is the major not-for-profit membership association for the project management profession Founded in 1969 Grew from 7,500 members in 1990 to over half a million members in 185 countries today

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The Role of the Project Manager

Project manager is expected to: integrate all aspects of the project, ensure that the proper knowledge and resources are available when and where needed, ensure that the expected results are produced in a timely, cost-effective manner.

Ch #-16

Trends in Project Management

Achieving strategic goals Achieving routine goals Improving project effectiveness (project management office) Virtual projects (global teams) Quasi-projects (ill-defined project)

Ch #-17

Recent Changes in Managing Organizations Replacement of traditional, hierarchical management by consensual management Systems approach Projects as preferred way to accomplish goals

Ch #-18

The Definition of a Project

Project is - a temporary endeavor undertaken to create a unique product or service. (PMI) - a complex, non-routine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs.
Ch #-19

The Definition of a Project

In the early days, project management was used mainly for very complex projects As the tools became better understood, they began to trickle down to smaller projects It has also moved out of just manufacturing to services

Ch #-20

Project Terminology
Program Project Task Work Package Work Unit

Ch #-21

Major Characteristics of a Project

Has an established objective Has a significant importance for senior management Drives to provide a set of deliverables (scope) Has a defined life span with a beginning and an end Typically requires across-the-organizational participation which causes interdependencies Involves doing something never been done before (Novelty, Uniqueness ) Has specific time, cost, and performance requirements Has inherent conflict
Ch #-22

What is NOT a Project?

Routine events like - use of a manufacturing line to produce a flow of standard products - production of weekly employment reports are not projects

Ch #-23

Comparison of Routine Work with Projects

Routine, Repetitive Work Taking class notes Responding to a supply-chain request Practicing scales on the piano Large scale manufacture of an Apple iPod Projects Writing a term paper Developing a supply-chain information system Writing a new piece for the piano Designing an iPod that is approximately 2 X 4 inches, interfaces with PC, and stores 10,000 songs Designing and RFID based logistics system for Wal-Mart
Ch #-24

Attaching tags on a manufactured product

Quasi-projects
No specific task identified No specific budget given No specific deadline defined

Ch #-25

Why Project Management?

The main purpose for initiating a project is to accomplish some goal PM increases the likelihood of accomplishing that goal PM gives us someone (the project manager) to spearhead the project and to hold accountable for its completion

Ch #-26

Why Project Management?

Better control and better customer relations Probable increase in projects return on investment (ROI) Shorter development times Lower costs Higher quality and reliability Higher profit margins
Ch #-27

Why Project Management?

Some statistics for Information Technology Projects:

1994 Successful projects Challenged projects Failed projects 16% 53% 31%

2004 29% 53% 18%

2006 35% 46% 19%

2009 32% 44% 24%

Ch #-28

Negative Side to Project Management Greater organizational complexity Higher probability organizational policy will be violated Higher costs, more management difficulties and low personnel utilization

Ch #-29

The Project Life Cycle

Figure 1-3
Ch #-30

Time Distribution of Project Effort

Figure 1-4

Ch #-31

Time Distribution of Project Effort

Ch #-32

Another Possible Project Life Cycle

Figure 1-5

Ch #-33

Risk During the Life Cycle

Estimate made at the start of the project

Figure 1-6

Ch #-34

Risk During the Life Cycle

Estimate made at times t0, t1 and t2

Figure 1-7

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The Structure of this Text

Follows the project life cycle Some topics stand-alone Other topics incorporated throughout

Ch #-36

Part I: Project Initiation

1. 2.

3.
4. 5.

The World of Projects Selecting Projects Strategically The Role of the Project Manager Working and Partnering with Others The Role of Projects in the Organization
Ch #-37

Part II: Project Planning

6. 7.

8.
9.

Planning the Work Activities Project Costs and Budgets Project Activity Scheduling Allocating Resources to the Project

Ch #-38

Part III: Project Execution

10.

11.
12. 13.

Information Requirements for the Project Controlling Project Execution Evaluating the Project Completing the Project

Ch #-39

Summary
How did PM emerge? What is a project? Three main goals of a project Role of the Project Manager Why Project Management?

Ch #-40