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SPECIAL EXECUTIVE

MASTERS PROGRAMME
Project Management

Lecturer
Azmat Qayum
A project has dedicated resources, a
single point of responsibility, clear
boundaries, across which resources and
deliverables move, limited duration; it is a
one-off task and has objectives. It is a
useful way of organizing work. Projects do
not arise without deliberate intervention.

Project Definition
Mergers
New markets, products
Market dominance
Expand into emerging economies
Form alliances within the customer/
supplier chain

Strategic Projects
Squeeze competitors out
Decentralization
Marketing campaign
Global purchasing
Supplier tie-ins
Customer tie-ins

Tactical Projects
Automate warehouse
Out source distribution
Refurbish buildings
Land acquisition
Introduce hand-held data recording
devices
Develop a company Intranet

Operational Projects
Managing the status quo
Authority defined by management
structure
Consistent set of tasks
Responsible for own function
Permanent organizational structure
Tasks – maintenance
Limited set of variables
Success – achieves interim targets

General Management
Responsible for overseeing change
Lines of authority fuzzy
Ever-changing set of tasks
Responsibilities cross functional tasks
Operates in structures for project life
Innovation
Main task to resolve conflict
Success – achieving stated end goals
Intrinsically uncertain

Project Management
 Why is this important ?
 A way of linking projects directly to the goals and strategy of
an organization
 What is a company trying to achieve by this approach?
 Identify Projects that Meet Strategic Needs
 Support organizational goals
 Direct organizational improvement
 Enhance/enable key products or processes
 Prioritize Potential Projects
 Ensure not too many projects are running at the same time
 Identify high risk projects
 Balance short, medium, long-term returns
 Reduce number of Projects approved for the wrong reasons

Balanced Project Portfolio Process


(PPP)
 Payback Period
 • Very common
 • Initial investment, and cash flows in

 Rate of return (average, internal, on investment etc)


 • Ratio of average annual profit versus investment

 Discounted cash flow or Net Present Value


method
 • Set required rate of return which must be achieved
 • Evaluate project against ROR include prediction of rate of
inflation
 Scoring models: Weighted factor models
 Project scored against a list of factors
 The factors are weighted depending on
 their importance
 An overall project score can be achieved for
Project Selection
 a wide range of different project types
Establish scope and objectives.
Invite tenders for supply.
Form a project feasibility or start-up
team.
Write a Project Initiation Document (PID).
• Evaluate tenders, select suppliers
• Agree contractual framework
• Set up subcontracts if necessary

Project Initiation/Startup
TQM:
 Quality culture throughout the organization
 Affects all aspects of the way the organization does business
 Must come from, and be championed from, the top

Quality through Process Improvement:


 Understanding existing processes and changing these processes
to improve product quality and/or reduce costs and development
time
Process and Product Quality Process improvement
is based on the assumption that the critical factor that influences
product quality is the
quality of the product development process.
statistical Quality Control This is based on
measuring the number of product defects and relating
these defects to the process.
Quality Assurance
 The WBS often appears as an outline with Level I tasks on the left
and successive levels appropriately indented.
 List the task breakdown in successively finer levels of detail.
Continue until all meaningful tasks or work packages have been
identified.
top down estimation Break down a complex task into
smaller parts until you can estimate accurately how long the
smaller task will take.
Bottom up estimation Identify all of the component
parts first and then join them together to form an overall
estimate.
Estimation by analogy The next project we do of a
certain type will take as long as the last project
Price-to-win estimation
The Work Breakdown The next project will take as
much time to do as we can get away with and still win the project
Structure
Parkinsonian estimation Parkinson s Law “Work
expands to meet the time for its completion”
 This is a centralized resource to support all
projects within the organization.
 It should be headed by a senior management
person to give status to project work within the
organization.
 Responsible for:
 • Setting PM policy guidelines
 • Producing working PM processes
 • Providing in-house support for project teams
 • Auditing projects and project teams
 • Transferring PM skills to personnel

Project Support Office


The project file should contain:
• Project organizational chart
• Stakeholder list
• Key stage responsibility charts
• Project brief
• Key stage Gantt chart
• Key stage work plan charts
• Project risk log
• Milestone chart
• Business case when significant changes
occur
Project File
Project Evaluation and Review Technique
Based on tasks involved in a development
and
their dependencies
Resources can be allocated to individual
tasks and task duration estimated

PERT/CPM
Critical Path
2
C=3
A=6

3 H=2 6
1 D=4 4
B=4
E=3
G=3
F=10 5
 An alternative diagrammatic form for information
contained in a PERT
chart.
 Tasks are indicated by a strip whose length is determined
by the duration
of the task.
 Tasks are lined up vertically in earliest start time order.
This is a contemporary process to PERT which for may
years was done
by managers using strips of paper moving along boards
with slots in
them.
 Gantt charts have the advantage of allowing a manager to
see effects
like Peak Loading, and examine ‘what-if’ situations on
Gantt Charts
moving tasks to
different dates.
• Draw the following Gantt chart
Tasks Precedence Time
a - 5 days
b - 4 days
c a 6 days
d b 2 days
e b 5 days
Gantt Charts
f c,d 8 days
WEEK 1 WEEK 2 WEEK 3 WEEK 4
Task a
Task b
Task c
Task d
Task e
Task f

Gantt Charts

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