Project Planning and Execution

Syllabus Coverage
Course Contents

 Understanding Project Management : Nature of Projects,Project

Characteristics,Integration of organisation strategy to projects
 Project Management functions : Methodology,Project Management as
a blue print for change,Product Management and Project Management
 The Project Manager : Characteristics and Conflicts,Critical
Issues,Selecting a Project Manager,Managing v/s Leading
 Risk Management – Understanding,Assessment,Identiication,Control
and response
 Project Organisation and it’s types
 Project Selection : Payback,IRR,NPV and case discussions

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Course Contents

 WBS,Planning resources and project schedule,project

charter
 Project Planning and Scheduling : Activity times –
estimation,Gantt
chart,Networks,PERT,CPM,AOA,Events,Activities,Critical
path,Slack,Float,Numericals
 Resource levelling,Estimating Costs,Costs of Change
 Project Budgeting – Methods and Techniques
 Project Execution and Control – Communicating and
Reporting
 Project Commissioning and Evaluation : Stabilization

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Understanding Project
Management

Project Planning and Execution

Definition

 A project is a specific,finite set of tasks to be

accomplished.Whether large or small,long-run or short-
run is not relevant.
 What is relevant is that the project be seen as a unit

 Project Management,initiated by the military provides

managers with powerful planning and control tools

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 Definition of a Project
Project Attributes

Purpose Life Cycle

One time activity
Slow Start
Well defined set
Build-up
Desired end-result Project/Programme.
subtasks
Peak or Maturity
Co-ordination

Cost,Quality Decline
Performance Unique
Technology Processes Products

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 Programme Management

Project

Programme

Tasks
Challenges

Success of

Aims
Work Packages the
Programme
Work Units

Interdependencie
s

Short-run/Long
run

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Why Project Management

 The basic purpose for initiating a project is to

accomplish specific goals.The reason for organizing the
task as a project is to focus the responsibility and
authority for the attainment of the goals of an
individual or a small group.
 In spite of the fact that the PM often lacks authority at
a level consisten with his/her responsibility,the
manager is expected to co-ordinate and integrate all
activities needed to reach the project’s goals.

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Why Project Management

 In particular,the project form of an organisation allows

the manager to be responsive to :
− The client and the environment
− Identify and correct the problems at an early
date
− Make timely decisions about trade-offs
between conflicting project goals
− Ensure that managers of separate tasks that
comprise the project do not optimize the
performance of their individual tasks at the
expense of the total project

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Parameters affecting Project Management
Three main aspects which require strategic action to
be taken.

Cost Performance/Quality Time/Schedule

 Interdependencies  Time is Money

 Importance during  Quest for better
life cycle stages
 Performance
performance leads dependence
 Trade-off to
 Delays
 Quality v/s
schedule
 Higher Costs

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Overview of Project Management

 Project Management is now being recognized as a

valuable “career path” in many organisations,as well
as a way to gain valuable experience within the
organisation.
 PMI was founded in 1969 to foster the growth and
professionalism of project management.
 Project Management,though not problem free is the
best way to accomplish certain goals.
 Projects often start slowly,build up speed while using
considerable resources and then slow down as
completion nears.

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 The Value Roadmap

Ensure Strategies are Successful

Strategize

Strategy Initiatives Operations Capabilities

Product Actions taken to Processes A product

Development create value throughout the development
strategies that through changes in digital product system that must
enhance people, process or value chain be in place for an
business value. technology. where initiatives initiative to be
are implemented. successful.

Value Executing Business

Processes Capabilities
Opportunities Strategies Initiatives

Align
Tie Processes and Initiatives to Corporate Objectives
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 Product First™ Value Opportunities

Score
1 ... grow share with
customer-focused products
6.0 Voice of the Customer

…protect product
2 position 2.0 Barriers to Entry
Growth
... improve ability to fulfill
3 demand 9.5 Improve Delivery Cycle

... design for ongoing

4 revenue streams Follow-on Revenue
3.0
VALUE 5
... develop/define new
Innovation
markets
5.0
... design to realize a
6 price premium Price Premium

... lower
4.0
7 Total Cost Out/Margin
product cost
Improvement
Profitability
... lower 9.0
8 development and Lifecycle Cost Management
lifecycle cost

9 ... improve asset 8.0 Optimized Operations

utilization
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 Typical Product Development “System” Today

Distributed Mfg

Supplier Supplier Distributed Mfg

Preferred Parts
Approved Vendors Feasibility
Supplier Feedback Distributed Mfg
Tooling Designs
Work Instructions
NC Programs
Requirements FTP
Design Feedback
Procurement Manufacturing
Custom
Configurations

Part Designs Field Notices

BoMs Engineering Service
SneakerNet
Changes Customer Concerns
Failure Reports
Models
User, Service
Drawings
Marketing Sales Manuals
Simulations
Training guides
Local Parts catalogs
Design Partner Courier
Email Customers
Offshore
Design Partner Customers
Concepts Proposals Regulatory
Requirements Customer Requirements
Captive ODC Authorities
Market Requirements Regulatory
Brochures, Data Sheets Requirements/
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Submissions
Page 14
 A Product Development System Optimizes the
Digital Product Value Chain

Supplier
Supplier Feasibility Feedback Distributed Mfg
Supplier Preferred Parts Tooling Designs Distributed Mfg
Approved Vendors Work Instructions Distributed Mfg
NC Programs

Requirements Custom
Design Feedback Procurement Manufacturing Configurations
Field Notices

Part Designs
BoMs Service
Changes
Customer Concerns
Engineering Failure Reports
Models User, Service
Drawings Manuals
Simulations Training guides
Parts catalogs

Sales
Local Design Marketing
Partner Customers
Offshore
Design Partner Concepts
Proposals Customers
Requirements Regulatory
Customer Requirements
Captive ODC
Market Requirements Authorities
Brochures, Data Sheets
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Product Management and Project
Management

Project Planning and Execution

 Product Management
Objectives and Strategies vis-à-vis Project
Management
Characterstics Growth Maturity Decline

Sales Rapidly rising sales Peak Sales Declining Sales

Costs Average Cost per Low Cost per customer Low Cost per customer
customer

Profits Rising Profits High Profits Declining Profits

Customers Early adopters Middle Majority Laggards

Competitors Growing Number Stable number beginning Declining number

to decline

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 Product Management
Objectives and Strategies vis-à-vis Project
Management
Strategies Growth Maturity Decline
Product Offer product Diversify brand and Phase out weak items
extensions,service,w models
arranty
Price Price to penetrate Price to penetrate Cut prices
market market

Distribution Build intensive Build intensive Phase out unprofitable

distribution distribution outlets

Advertising Build awareness and Build awareness and Reduce to level

interest in the mass interest in the mass needed to retain hard
market market core loyals

Sales promotion Reduce to take Reduce to take Reduce to minimal

advantage of heavy advantage of heavy level
customer demand customer demand

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 PDS can be Implemented Incrementally

Change Release to
Management Manufacturing

Configuration Dynamic
Management Publishing
Digital Digital
Product Product Content
Definition Management
Product
Development
Collaboration

Project
Management
& Execution
Timeline
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 Product First™ Value Opportunities (from
questionnaire)
Score
1 ... grow share with
customer-focused products
6.0 Voice of the Customer

…protect product
2 position 2.0 Barriers to Entry
Growth
... improve ability to fulfill
3 demand 9.5 Improve Delivery Cycle

... design for ongoing

4 revenue streams Follow-on Revenue
3.0
VALUE 5
... develop/define new
Innovation
markets
5.0
... design to realize a
6 price premium Price Premium

... lower
4.0
7 Total Cost Out/Margin
product cost
Improvement
Profitability
... lower 9.0
8 development and Lifecycle Cost Management
lifecycle cost

9 ... improve asset 8.0 Optimized Operations

utilization
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Project Evaluation and Selection

Project Planning and Execution

Project Evaluation factors
Production factors

 Time until ready to install

 Length of disruption during installation
 Learning Curve
 Effects on wastes and rejects
 Energy requirement
 Facility and other requirements
 Safety of proecss
 Availability of raw materials
 Required development time and cost
 Impact on current suppliers
 Change in quality of output

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Project Evaluation factors
Marketing factors

 Size of potential market for output

 Probable market share of output
 Time until market share is acquired
 Impact on current product line
 Consumer acceptance
 Impact on consumer safety
 Estimated life of output
 Spin-off project possibilities

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Project Evaluation factors
Financial Factors

 Profitability,Net Present Value of Investment

 Impact on cash flows
 Payout period
 Cash requirements
 Time until breakeven
 Size of investment required
 Impact on seasonal and cyclic fluctuations

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Our Global Network: 6,000 Employees with Many
Years' Experience in the Automotive Industry.
We know the country-specific requirements.
Added-Value Regional Approach Offer

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Spain, Portugal
Austria Asia Pacific
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More than 2,000 experts > More than 300 experts > More than 100 experts > Less than 100 experts

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 Benefit From Our Comprehensive Industry Expertise.
Focused solutions for all requirements.
Added-Value Regional Approach Offer

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Solutions
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for SAP® Infrastructure Application
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Dynamic
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Internet Access Networks
TC

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 Business Orientation, Industry Expertise, Process
Expertise.
We provide ICT services which span the length of the
automotive value-added chain.Added-Value Regional Approach Offer

Industr
y Automotive Solutions
Process Engineering Manufacturing Marketing, Sales & Service InCar
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07/13/2006
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 Our Integrated View Point and Way of Working.
Profit from an “Innovative Transformation.”

Added-Value Regional Approach Offer

Technological Benefit Integrated Thinking Human Aspect

 Identify and  Analyze company  Create higher quality

implement existing processes and transparency
potential  Examine the through change
 Evaluate the solutions’ ability to management
economic benefit of be integrated  Reduce
investment in consequential costs
processes and through the
technologies involvement of all
 Make the those involved
contribution to the  Achieve faster
success of the project realization
company measurable with training courses

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