Advanced project management ppts

Advanced Project Management
Level 6

Session 1
Managing and Leading Projects

Learning Outcomes
At the end of this session candidates will be able to:
 Explore the various definitions and characteristics of a
project
 Analyse the difference between leadership and management
relating to projects
 Explore why organisations in different sectors need to
engage in projects and consider different types of project
 Evaluate the importance and relationship of project and
people management in achieving project goals.
 Demonstrate an understanding of external business
environmental factors and how they may affect a project.
 Critically evaluate the concept of power and influence.
 Identify the key stakeholders for a purchasing and logistics
project and how their power and influence change throughout
the life of the project.

Definitions of Project Management
 ‘… A set of activities with a defined start
point and a defined end state, which
pursues a defined goal and uses a
defined set of resources.’ (Slack et al)
 “... A temporary endeavour undertaken
to create a unique product or service”.
(US PMI)
 “... The process by which projects are
defined, monitored, controlled &
delivered.....desired outcome......bring
about change” (APM)

Definitions
 Cips Study Guide
 “a group of activities that have to be
performed in a logical sequence to meet
pre-set objectives outlined by client”
 Meredith & Mantel
 “a specific, finite task to be
accomplished......project seen as a
unit....characteristics..importance,
performance, lifecycle,
interdependencies, uniqueness,
resources and conflict”
 What are key features? Group exercise

Distinctions between Leadership
and Management
“Leadership is the lifting of a person’s vision to
higher sights, the raising of performance to a
higher standard, the building of personality
beyond its normal limitations”.
“Nothing better prepares the ground for such
leadership than a spirit of management that
confirms in the day-to-day practices of the
organisation strict principles of conduct and
responsibility, high standards of performance
and respect for the individual and his work.”
Drucker; The Practice of Management

What do Managers Do?
 Plan
 Organise
 Coordinate
 Control
 Lead
 Fayol
 Is this mainly a shorter
term focus?
 Establishing overall
purpose or policy
 Forecasting and
planning
 Organising and
allocating work
 Giving instructions
 Checking
performance
 Coordinating the
work of others
Buchanan

What do Leaders Do?
 Enable people and
groups to achieve their
objectives
 Set and communicate
objectives
 Monitor performance
and give feedback
 Establish basic values
 Clarify and solve
problems for others
 Organise resources
 Longer term?
 Administer rewards and
punishments
 Provide information,
advice and expertise
 Provide social and
emotional support
 Make decisions on
behalf of others
 Represent the group to
others
 Arbitrate in disputes
 Act as a father figure
 Become a scapegoat

Leader or Manager?
 Group exercise
 What do you see as the key
differences between
management & leadership?
 Which skills are more important
in project management?
 Recap Kotter p 11 – effective v
efficient?
 Also Mintzberg p 12
 1

Reasons that Organisations
Undertake Projects
 Change in:
 The external environment
 Markets and customer needs
 Technology
 Products and services
 Processes
 Globalisation
 Impatient customers
 Increasing demand for unique and customised
solutions
 Change within organisations initiated by senior
managers
 Paired ex – list examples for each point above –
own org. or alternative

Hard or Soft Projects
 Hard – normally refer to tangible,
measurable activities and processes
 Soft – human factors and processes –
eg communication, behavioural change
and acceptance
 Can you easily distinguish simply
between these two aspects of project
work
 Is Millau Bridge a hard project?

‘Hard’ vs ‘Soft’ Projects
 Product development – p8
 Process development – eg
BPR
 Re-design/modification of
products and processes
 Technology development
 Installation of new IT
systems example p9 –
London Ambulance
Service
 Site relocation/closure
 Culture change
 Introduction of a new
organisational structure
 A new appraisal scheme
 How would you categorise
each of these?
Lyson’s categorisation of
projects:
 Manufacturing projects
 Construction projects
 Management projects
 Research projects
 Too simplistic?

Constituents of the Project
Context
 PEST/SLEPT factors
 Porters 5 Forces
analysis
 Stakeholders
 Resource constraints
 Time constraints
 Overall strategy of
the organisation
CIPS syllabus
 Complexity
 Completeness
 Competitiveness
 Customer focus
Maylor

Common Stakeholder Expectations
 Fit for purpose
 Aesthetically pleasing
 Free from defects
 Delivered on time
 Value for money
 Reasonable running costs
 Satisfactory reliability/durability
 Supported by worthwhile guarantees
 Which stakeholders do each of above
relate to?

Stakeholder Power/Interest Matrix
Keep satisfied Key players
Keep informed
Low
Power
Low High
Level of interest
Minimal effort
High
Source: Mendelow, 1991
Stakeholders are
likely to move
between
segments during
the life of a project

How do you keep
stakeholders satisfied?
 Satisfaction = perception – expectation
 Manage their expectations
 Re projects – may be necessary to “sell”
the final outcome
 Ensure know actual requirements –
don`t over-promise
 Keep advised of progress
 Spec exam paper – Sportsco Q 1

Session 2
Managing and Leading Projects

Learning Outcomes
At the end of this session candidates will be
able to:
 Evaluate and explain the idea of the project as a
conversion or transformation process.
 Explore the concept of variety and volume in
defining the nature of an operation and evaluate
its application to project management.
 Describe the role of a project selection

A Project is a Conversion Process
The project
(transformation
process)
The project
(transformation
process)
Input
resources
Input
resources
Materials
Information
Customers Output
(product/
service)
Customers
Input trans-
forming
resources
Facilities
Staff

Conversion Process
Inputs Transformed into
Outputs
Same as a process?
What other input resources do
you need?
See p 30

Projects as a Technology
Volume
Variety
HighLow
LowHigh
Projects
Process
plant
Small
batch
Large
batch

The Project Model
ProjectInput:
Want/need
Output:
satisfied need
Mechanisms:
•people
•knowledge & expertise
•capital
•tools & techniques
•technology
Constraints:
•Financial
•Legal
•Ethical
•Environmental
•Logic
•Activation
•Time
•Quality
•Indirect effects

Project Constraints
Group exercise
Discuss examples and give reasons why
Maylor lists these factors - in previous slide
-as constraints in his ICOM model

Project Portfolio Process
 How many projects can an organisation
handle?
 Identify projects that satisfy strategic
needs
 They support multiple goals – feasible?
 They drive organisational improvement – why
might these take priority?
 They enhance/enable ‘key areas’ – how
determine?

Portfolio Process
 Prioritise candidate projects
 Limit active projects to a manageable level –
do you always have necessary resources?
 Identify risk-intensive efforts – why?
 Balance short-, medium- and long-term
returns – why is this important?
 Prevent projects getting in the back door
– how/why might this happen?
Meredith & Mantel, 2005

Project Selection Factors -
Issues to Consider
 Operations
 Interruptions, learning, process
 Marketing
 Customer management issues
 Financial
 Return on investment – what is acceptable?
 Personnel
 Skills and training, working conditions – what
impact on employee motivation?
 Administrative
 Regulatory standards, ‘strategic fit’ – with
what?

Strategic Success Factors
 Project mission – clearly defined and agreed
objectives
 Top management support – top managers must get
behind the project and make clear to all personnel at
the outset their support
 Project action plan – showing details of the required
steps and resource requirements in the
implementation process
 Group ex – how would getting each of these factors
wrong cause problems for an organisation? Can you
think of any project failures attributable to any of these
factors?

What Projects Have in Common
 An objective or objectives, usually defined in
terms of quality, time and cost – the “iron
triangle”
 Each is unique – a ‘one-off’ – always?
 Of a temporary nature – what is temporary?
 A degree of complexity, stemming from multiple
tasks and participants – often the key challenge
 A degree of uncertainty, often technical
NB. A ‘programme’ implies greater longevity or
continuity
 Spec Exam paper Q 3

Session 3
The Project Life Cycle

Learning Outcomes
At the end of this session candidates
will be able to:
 Consider different approaches to the project life
cycle
 Identify the different stages of the project life
cycle and the key characteristics, demands and
problems most likely to be encountered at each
stage
 Evaluate the concept of the project life cycle as
a management tool
 Investigate a variety of problem-solving
approaches and the extent to which they may be
relevant during the project life cycle

Comparison of Characteristics of
Projects and Problems
Projects
 A supported purpose/
importance
 Specifications of
performance (form, fit,
function)
 Known solution
 Stages with finite due date
 Interdependencies
 Uniqueness
 Resource requirements
and tradeoffs
 Stakeholder conflict
Problems
 Intransparency – lack of
clarity of situation
 Polytely – multiple goals
 Complexity – large
numbers of items,
interrelations and
decisions
 Dynamism – time
considerations

Three-stage Project Life Cycle
Source: Meredith
& Mantel, 2003,
Wiley

Three Stage Life Cycle
 Why might work in project follow this
guideline?
 Any examples? – construction of new
housing estate
 Consider time/effort impact – fig 4.2 p 39
 Alternative patterns? See p 40
 Why is it important to know what is likely
scale of progress? How identify in advance?
 Group ex – look at p 42 – relative
importance of project objectives – agree?

Four-stage Project Life Cycle
Source: Maylor
D1: Define the project
D2: Design the project process
D3: Deliver
the project
D4: Develop
the process
The brief
The proposal/PID
The outcomes
Process &
product
knowledge

Maylor’s Four-phase Approach
Phase Key issues Key questions
Define the project Organisational &
project strategy; goal
definition
What is to be done?
Why is it to be done?
Design the
project process
Modelling & planning;
estimating; resource
analysis; conflict
resolution; business
case
How will it be done?
Who will be involved in
each part?
When can it start and
finish?
Deliver the
project
Organisation; control;
leadership; decision-
making; problem-
solving
How should the project
be managed?
Develop the
process
Assessment of
process & outcomes;
evaluation; changes
for the future
How can the process
be continually
improved?

Developing a Project Strategy
Getting
started
Analysis
Commitment
Consultation
Moving
forward
Preparation
Feasibility
trials
Bringing
it in
Doing
the work
Making the
change
Handing
it on
Handover
Support
Review
Source: CIPS

4 Stage Models
 Group exercise
 Compare and contrast Maylors 4 stage
model to Cips version on slide – also
use Cips version p 45 – table 4.4
 Are they effectively one and the same –
or are there genuine differences?

Five-stage Project Life Cycle
Weiss & WysockiDefine
Close Out
Plan
Organise
Control
Changes
Corrective action
Stage 1
Stage 2
Stage 3
Stage 4 Stage 5

5 Stage Models
 See also Frigenti and Comninos model
– p 45/6
 Tables 4.5 and 4.6 p 46 – individual
homework exercise – critically evaluate
these 2 models, recommending your
preferred option for use in your
organisation

McKinsey’s 7S Framework
Strategy
Style/
culture
Systems Structure
Staff
Skills
Source: McKinsey 7S framework
Shared
purpose

The 7S Project Approach
Element Description
Strategy High-level requirements of the project and
means to achieve them
Structure Organisational arrangements that will be used
to carry out project
Systems Methods for work to be designed, monitored
and controlled
Staff Selection, recruitment, management and
leadership of those working on project
Skills Managerial and technical tools available to
project manager and staff
Style/culture Underlying way of working and inter-relating
within the project/organisation
Stakeholders Individuals and groups who have an interest in
project process or outcome
Source:
7S framework
adapted by
Maylor

7 S Framework
 This is a more strategic approach to
Project management – focuses upon
strategic alignment and “fit”
 Considers organisations capabilities,
capacity, priorities and strategic
objectives.
 Does project fit or match these areas?
 Consider impact of project on other
activities and areas of the organisation –
resources, culture etc

Problem Solving Techniques
 Maylor
 Thamhain & Wilemon
 Thomas-Killman Conflict Resolution
 Brainstorming
 Ishikawa Fishbone Analysis
 Cause – Effect – Cause Analysis
 Decision Trees
 Pareto Analysis
 5 Whys
 Lewins Force Field Analysis

Systematic Problem-solving Model
Problem
identification
Seek
alternative
definitions
Select
definition
Evaluate
possible
solutions
Select
solution
Implement
Check and
amend
Source: Adapted from Maylor

Thamhain & Wilemon
 What are main causes of conflict in
projects?
 Group exercise – prioritise from following;-
 Cost, Personalities, Priorities, Procedures,
Schedules, Staffing, Technical Problems
 At what stage will some be more
significant than others – use 4 stage
approach – formation, early
implementation, main programme, closing.

Thomas-Killman Model
 5 Approaches to conflict resolution
 Avoiding – what? When use?
 Forcing – what?
 Accommodating – why?
 Compromising – isn`t this always the
best way?
 Collaborating – how does this work?
 Is it horses for course approach?

Brainstorming
 Purpose
 To generate a large number of ideas
 To stimulate creativity
 Technique
 The ‘problem’ to be solved is described or stated
 Everyone participates, either in turn or simply by
calling out in an orderly way
 A team member captures everything as said on
paper/board
 No judgement or criticism of others’ suggestions:
the group accepts outrageous, unrelated ideas
 Ideas are developed by building on others’ ideas
 When there are no more ideas, the exercise is
over
What are difficulties of using this technique in work
environment?

Ishikawa Fishbone Analysis
 Purpose
 To visually represent in specific categories the
probable causes of a problem
 To help people visualise a problem and structure
its analysis
 Process
 Identify the ‘problem’ and place it in the ‘Effect’
box.
 Trace the process through all stages to identify all
possible contributory causes. Use the
Brainstorming technique to consider all the
possible causes that may result in the ‘Effect’.
 Group possible causes under headings (for
example, the 4Ms: Methods, Manpower,
Materials, Machines; or steps in the process being
analysed).

Example of Fishbone Diagram
Error in item
stock control
EFFECT
MACHINERY MANPOWER
METHODSMATERIALS
Insufficient space
at locations
Incorrect
tube
pattern Labelling on
lowest rack
Incorrect
quantity
at location
CountingMixed or mis-
placed stock
Poor quality
staff training
Poor
procedures
Returns
Excessive
movements
Consecutive
rack
numbering
No stock
stickers
Loose
components
Uneven
tube
lengths
Loose
end stops

Cause-effect-cause Analysis
 Purpose
 To overcome stagnation in solving problems
that are complex and difficult to structure
 To identify the root cause of a problem
 Technique
 Best results emerge when a skilled facilitator
is available
 State the problem and identify the effects
 Explore how the effects relate to one another
 Use ‘why’ and ‘how’ successively to explore
causes of the observed effects
 Form a cause-effect diagram on which action
can be taken – see p 59/60

Decision Trees
 Purpose
 To identify likely outcomes and probabilities
in a problem
 To calculate the expected value of possible
outcomes
 Technique
 Identify the scope of the decision to be taken
 Identify sub-decision points
 Identify the outcomes and probabilities
possible from each decision point
 Calculate the expected values for specific
routes through the tree
 May 07 Exam paper Q 5

Session 4
Contemporary Approaches to
Managing Projects

Learning Outcomes
 Explain the 6Σ approach and what it seeks to achieve
 Identify the eight key processes and requirements of
PRINCE2 and evaluate the effectiveness of this
approach to project management
 Analyse the key requirements of Critical Chain and
explain how projects that use CCPM can achieve
better results than other methods
 Explain concept of theory of constraints

Six Sigma
 A continuous improvement method – Motorola,
1986
 Since applied and popularised by others, for
example, GE and Honeywell
 Aim –
 To profitably improve the quality of products
and services to the customer
 Statistically, a defect rate = 3.4 defects per
million opportunities – 99.9997% perfect
 Is this always appropriate?
 Requires major investment in time and
resources

Six Sigma
 Key characteristics:
 Focuses on the customer's critical-to-quality needs
(CTQs) – V.O.C.- what are they? How establish?
 Concentrates on measuring product quality and
improving process engineering
 Gives top-down, project-driven process improvement and
cost savings
 Is a business strategy execution system and so is truly
cross-functional
 Provides focused training with verifiable ROI
 Is business results oriented
 Has 3 key component areas – Process Improvement,
Process Design (Redesign), Process Management

Process Improvement - DMAIC
Define
Control
Measure
Analyse
Improve
… the project goals and
customer deliverables
… future process performance so
that improvements can be sustained
… the process by eliminating
defects
… and determine the root causes
of defects
… the process to determine
current performance

Process Design (Redesign) -
DMADV
 Define – Id and set goals
 Match/measure – benchmark against
customer needs/expectations
 Analyse – performance measurements
& outline enhanced processes to meet
customer needs
 Design/implement – new processes in
detail
 Verify – controls to ensure compliance

Process Management
 Changes how organisation is structured
and managed
 4 Steps are ;-
 1) Understanding processes and
customer expectations
 2) Continual measurement
 3) Analysis of data
 4) Responding to variances
 Is 6 Sigma a project management tool?

Benefits of Six Sigma
Direct benefits
 decrease in defects
 reduced cycle time
 lower costs to provide
goods and services.
 data-based decisions
 sustained gains and
improvements
 better safety
performance
 fewer customer
complaints
Indirect benefits
 improved customer
relations and loyalty
 team-building
 effective supply chain
management
 increased margins
 greater market share
 world-class standard
 development of staff
skills

Statistical Basis of Six Sigma

Prince 2
 Originated by UK Gov in 1989 – Prince
2 - 1996
 Designed for public sector I.T. Projects
 Now generic approach for all types of
project
 8 stage model – see Fig 6.1 page 67
and note the 8 inter-reacting stages plus
external stage of Corporate
Management –goup ex – read and
evaluate

PRINCE2 (Projects In Controlled
Environments)
Key processes
 Directing the project
 Planning a project
 Starting up a project
 Initiating a project
 Controlling a stage
 Managing product
delivery
 Managing the stage
boundaries
 Closing a project
Project management
 Project Board:
 Project assurance
 Project support
 Project manager
 Documentation:
 Quality log
 Issues log
 Risk log
 Bureaucratic controls
 Emphasis on early
conflict resolution

Prince 2
 Group exercise
 What are advantages and criticisms re
this approach?
 See p 69 – agree with OGC claims?

Critical Chain
 Traditional project estimation techniques ineffective:
 Time and resource constraints usually violated, for
example,
• People have to multi-task – see p 71
• General Uncertainties
• Departments include safety margins
• Parkinsons Law
• Goldratt – pass on delays but not advances
• ‘Student syndrome’ (last minute)
 So, PMs rely on ‘padding’ of schedules and budgets
to provide slack
 Unknown nature of event interaction
 Maylor, 2003, Meredith & Mantel, 2005

Theory of Constraints
Approach
 Project cannot move faster than slowest process
– “convoy effect” or “weakest link”
 Approach is to manage bottlenecks (constraints)
 Activities with several predecessors and/or
successors
 Add ‘time buffers’ at bottleneck events
• ‘Safety stock’ has equivalent in
manufacturing
• ‘Just-in-case’ equivalent to JIT
• Statistically-derived ‘path buffers’
 Establish the critical chain for scarce
resources
 Prioritise resources in chain events
Meredith & Mantel, 2005 and Goldratt’s ‘Theory of Constraints’

Constraints 2 – see p 72/73
 Main stages of the TOC approach:
 Identify the constraint (critical path/critical
resources)
 Exploit the system constraint – ie work it to
its maximum capacity
 Subordinate everything to the constraints
 Elevate the constraint – find additional
resources for it
 Go back and find new constraints
 May Exam Case Study Q 1

Session 5
Exploring the Stages of a Project

Learning Outcomes
 Identify and explain key stages in a typical project.
 Explain the tasks during project initiation and definition
 Explain what is involved in developing a project plan
and budget and in evaluating project risk
 Explain how a project might be structured and
resources recruited, organised and allocated
 Identify key methods of measuring and controlling
project performance and recommend an appropriate
approach for a project
 Explain what is involved in the closure of a project
 Explain what is involved in the review and evaluation
of a project and the learning stemming from it

Stages of a Typical Project
1. Initiation and definition
2. Planning
3. Organisation and implementation
4. Measurement, monitoring, control and
improvement
5. Closure
6. Review, evaluation and learning
Not directly comparable with earlier
examples of life cycle models
Lysons

Stage 1 – Initiation and Definition
What’s involved  Identifying project goals
 Listing project objectives
 Determining preliminary resources
 Identifying assumptions and risks
Tools &
techniques
 Financial appraisal
 Project initiation document (PID)
 Quality Function Deployment
 Risk analysis & risk/impact matrix
 Suitability/feasibility/vulnerability
 Voice of the customer

Stage 1
 Needs to consider;-
 Project selection – “sacred cow”, operating
necessity, competitive necessity, product
line extension, comparative benefit – what
do these mean?
 Numerical selection methods – unweighted
factor (how many boxes does it tick),
unweighted factor scoring ( what marks
does it score in each box), weighted factor
score (which boxes are more important)
 See P79 - discuss

Stage 1 - continued
 Scope/outcomes – what is excluded?
 Timing
 Resources – what types?
 What R.O.I? Resources. Cashflow
 Risk Impact – how? Likelihood/impact
 V.O.C. – remember 6 sigma

Stage 2 – Project Planning
What’s involved  Identifying activities
 Estimating time and cost
 Sequencing activities – why important?
 Identifying critical activities
 Refining the plan
 Updating the initial risk analysis
 Writing the project proposal
Tools and
techniques
 Work breakdown structure –
what/who/where/when
 Network diagrams and CPA
 QFD
 SIPOC – see session 7

Stage 2
 What will be involved?
 Range and scope
 Sequence – often critical – why?
 Why written plan? How used? Project
creep
 Timing & Costs – assess spending
against likely achievements not time
spent on activity – why?
 Budgets – top down/bottom up?
 Use of Critical path analysis – significant
aspect at this stage – why?

Stage 3 – Organisation and
Implementation
What’s involved  Determining personnel needs
 Recruiting the project manager
 Recruiting the project team
 Organising the team
 Assigning work packages
Tools and
techniques
 Network diagrams and CPA
 Seven tools of quality control
 Problem-solving tools
 Team roles (Belbin)

Stage 3
 How project team is set up! How does
existing organisational structure impact
upon this?
 Group exercise - What attributes do we
need on the team?
 Where do Belbin, Tuckman, Maylor
models fit in this aspect of project
management?
 Cross functional teamworking – issues,
problems

Stage 4 – Measurement,
Monitoring and Improvement
What’s involved  Defining management style
 Establishing control tools
 Preparing status reports
 Reviewing the project schedule
 Issuing change orders
Tools &
techniques
 SIPOC
 Problem-solving tools
 Seven quality tools
 QFD

Stage 4
 Consider both Organisation & Project
Team Structure
 What is appropriate management style –
vary depending on project type/nature?
 How control project? – which methods?
 Reporting process – to whom?
 Deadlines – key stages
 How/when review/evaluate progress?
 How communicate change?
 Important at this stage to refer back to
original proposal – why?

Stage 5 – Closure of the project
What’s involved  Obtaining client acceptance
 Installing deliverables
 Documenting the project
 Issuing the final report
Tools and
techniques
 SIPOC
 Seven quality tools

Stage 5
 Have we met project aim?
 V.O.C.
 Implement project – do it! Does it work?
 Why record the process used?
 Learning is crucial – can be more
important than project itself? Why?
 Report – to who?
 Finality
 Team feedback
 Closure

Stage 6 – Review, Evaluation
and Learning
What’s involved  Conducting a project audit
 Learning lessons (from successes
and failures)
 Communicating the review,
evaluation and learning
Tools and
techniques
 SIPOC
 Seven quality tools (including cost
of quality)
 Project review

Stage 6
 Audit process – did we achieve
success?
 Who audits? Internal? External?
 Audit only at end of project?
 Is on-going audit preferable? Why?
 What are problems/drawbacks re
auditing?
 Learning – Kolbs learning cycle
 Spec exam paper Q 4

Session 6
Tools & Techniques for Data Collection,
Analysis and Decision Making

Learning Outcomes
able to:
 Utilise a range of tools and techniques to
assist in data collection, analysis and
decision-making:
 Appraise appropriateness, selection and
implementation of the tools and
techniques available to the project team

Project Management Tools
 Seven tools of quality control
 Financial appraisal
 Voice of the customer
 Quality function deployment
 ‘Moments of truth’
 Risk analysis and assessment (risk mitigation)
 Risk/Impact matrix
 Suitability/feasibility/vulnerability

Evaluating PM Tools and
Techniques
 Appropriateness
 Show that you can pick the right tool for the
task
 Selection
 Show that you are aware of the limitations,
as well as its capabilities
 Implementation
 Show that you can use the tools correctly

Ishikawa 7 Tools of QC
 Flowcharts – graphical depiction of process
 Check sheets – simple log of occurrences of
specific event/problem
 Pareto
 Fishbone diagram
 Histogram – bar chart – shows data in grouped
frequency distribution
 Scatter diagram – eg correlation between
advertising spend and sales
 Statistical Process Control charts – control limits
re acceptable performance/tolerances

Risk Assessment
 What is the situation to be assessed?
 What can go wrong? (What are the hazards?)
 What is the probability that each hazard will
occur?
 What are the consequences if it does go wrong?
 What is the uncertainty of our risk assessment?
 Summary – probability, impact and uncertainty
 Recommendations

‘Risk’ vs ‘Uncertainty’
 Risk – When the decision maker knows
the probability of each and every state of
nature and thus each and every
outcome. An expected value of each
alternative action can be determined
 Uncertainty – When a decision maker
has information that is not complete and
therefore cannot determine the expected
value of each alternative

Financial Appraisal
 Payback period – time to recover initial investment
through estimated cash inflows from the project
 Average rate of return (ARR) – average annual
profit ÷ average investment
 Discounted cash flow (DCF) – present value
method
 Internal rate of return (IRR) – rate of return that
equates present value of cash inflows and outflows
 Profitability index – NPV of all future expected
cash flows ÷ initial cash investments

Quality Function Deployment
 QFD = VOC
 Final design/outcome = customers
needs
 See p 109/110 for worked example

Service Quality
Dimensions of service
quality
 Access
 Communication
 Competence
 Courtesy
 Credibility
 Reliability
 Responsiveness
 Security
 Understanding
 Tangibles
Parusuruman, Zeithaml &
Berry
‘Moment(s) of truth’
 An interaction with a
customer
 SAS in 1980s:
 Average passenger was
in contact with five SAS
staff per trip
 Five million passenger
journeys a year
 25m opportunities a
year to satisfy or
dissatisfy customers

Risk/impact Matrix
ImpactLow High
Probability
LowHigh
Tolerance
threshold
(depends on
organisation)

Session 7
Systems and Processes in Project
Management

Learning Outcomes
 Demonstrate the approach of systems thinking and
process focus using process mapping techniques and
procedures
 Explain end-to-end processes
 Construct a flow chart for a process
 Explain the interfaces and swim lanes
 Explain the workings of critical chains software and its
impact on projects
 Appraise appropriateness, selection and
implementation of the systems and process
techniques available to the project team

SIPOC Mapping
ProcessSuppliers Inputs Outputs Customers

Flow-charting Processes
 Purpose
 To describe the ‘flow’ of a process
 Process
 Identify the process to be charted. It should have
defined inputs and outputs and an ‘owner’.
 Define the start and end of the process with a
circle or oval.
 Identify the major steps and represent each with a
rectangle. Start the description of each step using
a verb (doing word), for example, measure
diameter, collect from stores.
 Show decisions as a diamond with no more than
two outcomes (for example, ‘yes’ and ‘no’)
 Represent the flow through the process with lines,
using arrows where necessary for clarification, for
example, up-arrow where flow returns to a
previous step.

Work Breakdown Structure
 Lists tasks to be completed – assigns
responsibility for each task
 Can`t eat an elephant
 Supported by Linear responsibility chart
– who “owns” task and where co-
operation between depts or individuals
is required
 Gantt Charts – measures actual and
planned progress – quickly highlights
overruns – resource planner – even out
demand for resources

Interfaces and Swim Lanes
 Activities organised into channels –
each one representing the
responsibilities of individual, dept or
organisation
 Highlight processing gaps and
inefficiencies
 Focus attention on high-risk areas
where work is transferred between
groups – the interface
 See p 135

Critical Path Analysis
 Use Profex p 114 – 118
 Worked example
 Crashing the project
 Pert – use of estimates of likely duration of
activity, optimistic estimate and pessimistic
estimate to calculate mean time and standard
deviation re activity.
 Then use of probability statistics to estimate
likelihood of over-runs
 Gert – uses concept that some activities may fail
& need repeating – use of statistics to estimate
likely occurrence and costs of such events

Session 8
Techniques for Purchasing and Logistics
Projects

Learning Outcomes
able to:
 Identify a range of purchasing and logistics
projects
 Identify characteristics that differentiate these
projects from projects in other functional areas
 Apply and appraise the usefulness of standard
project management tools and techniques for
purchasing and logistics projects
 Apply computerised project management
systems for purchasing and logistics projects

Examples of P and S
Projects
 Group exercise – what projects are
currently running in your org purchasing
function?
 What is your involvement?
 What are key objectives?
 What are main difficulties and
constraints?

Characteristics of P and S
projects
 Specific
 Time Constrained
 Limited Resources
 Cost Reduction
 Product performance
 Overcoming reluctance to change by internal
stakeholders
 Including int. Stakeholders in project – getting
their commitment
 Accessing variety of data – internal & external
 Securing significant “added value” for org.
 Develop good external relationships with
suppliers

Managing P and S Projects
 Group exercise
 Applying concepts and models – which
of those examined so far do you use in
your organisation?
 Applying tools and techniques – which
work best in your org?
 Applying software – which do you use?
How effective is it? What are
advantages? See next slide

Software Systems
Provide support in:
 Tracking contracts
 Tracking
responsibilities
 Tracking activities
 Communicating
 Integrating
 E-tendering
Evaluation criteria
 The nature of the
products
 Ownership of the
code
 Stability of
requirements
 Software
maintenance and
development

Software Systems
 Group exercise
 What are main benefits in using
software packages for running projects?
 What are the disadvantages?

Session 9
Key Factors in Successful Project
Management

Learning Outcomes
 Evaluate the elements of the ‘iron triangle’ and their
interdependency
 Contrast the ‘iron triangle’ approach with the contingency and
critical chains (‘crashing’) approaches
 Analyse and identify process-based factors in the success
and failure of purchasing and logistics projects
 Explain the requirements of effective project leadership
 Appraise the qualities and characteristics of a successful
project manager
 Analyse and explain the characteristics and importance of
teamwork in a project
 Analyse the extent to which people management and
leadership issues contribute to success and failure in
projects

The ‘Iron Triangle’
Quality
Cost Time
Constituents of objectives:
•Purpose
•End result
•Success criteria

Iron Triangle
 Standard idea
 Simple concept
 Relatively simple factors to measure
 Relevant for all projects – at least in part
 Need to clarify objectives of each clearly
at outset
 Fundamental to negotiations
 However – remember targets will
probably change during project lifetime

Contingent Approaches - no
one “best way” – “it depends”
 Developed during the 1990s to overcome
weaknesses in the previous ‘one best way’
approach
 Loose framework of approaches – use
most suitable for the circumstances
 Emphasise and cater for:
 Strategic context of projects with their
wide range of stakeholders
 Developments in technology
 New management methods, for
example, virtual teams
 Development of more capable PM
software

Contingency approach 2
 Project managers integrate:
 Resources
 Knowledge
 Processes
 Means using one approach (or more)
appropriate to the circumstances
(contingencies)

‘Crashing’ Project Float
 ‘Crashing’ is the process of reducing
time spans on critical path activities so
that the project is completed in less time
 Usually involves greater cost:
 Overtime working
 Allocating additional resources
 Subcontracting
 Effect:
Time
Cost

Responsibilities of a Project
Manager
 Responsibility to the parent organisation
 Responsibility to the client
 Responsibility to the team members
 “Above all, the PM must never allow
senior management to be surprised” –
 Being prepared to give ‘bad news’

Key Activities of Project Managers
 Shaping goals and objectives – project
goal inevitably changes
 Obtaining resources – easy?
 Building roles and structures for their
team – “followers make their leader”
 Establishing good communications
 Seeing the whole picture –strategic
vision
 Moving things forwards (especially in
difficult circumstances) - driver

Role and Skills of the Project
Manager
 Background and experience relevant to needs of
project
 Leadership and strategic expertise for the ‘big
picture’
 Technical expertise for sound decisions –
always?
 Interpersonal competence and people skills to
champion, communicate, facilitate, motivate,
and so on
 Proven managerial ability for getting things done
Weiss & Wysocki

Skills
 “He who has not walked the road, does
not know the potholes” – Confuscius
 Group exercise
 Agree with Confuscius?
 What other skills does project manager
need?

Factors Affecting the Project
Manager’s Role and Style
 Nature of the task
 Organisational structure
 Organisational culture
 Individual motivations of the team
members
Style: Cooperation ↔ Coercion
Maylor

Four Roles for Project Managers
 Leadership – the vision and style
 Motivation – managing expectations and
rewards
 Team building – skills mix and cooperation
between members
 Communication – different aspects and
different stakeholders

Project Teams
 Personality theories, for example, Belbin based on:
 Intelligence (high/low)
 Dominance (high/low)
 Extraversion/introversion
 Stability/anxiety
 Team activities
 Content – what the team does
 Process – how the group works
• Task processes
• Maintenance processes
 Team dynamics
 Forming
 Storming
 Norming
 Performing
 Mourning

Project Teams
 Teams make projects succeed – agree?
 Who is in team?
 Temporary?
 Cross functional
 Conditional
 Crisis?
 Virtual teams? – core – peripheral team
members

Belbin’s Team Roles
Implementor Organising; practical Inflexible
Coordinator Welcoming; strong
sense of objectives
Ordinary intellect or
creativity
Shaper Drive Prone to impatience
and provocation
Plant Genius Up in the clouds
Resource
investigator
Knows ‘a man who
can’
Soon loses interest
Monitor evaluator Judgement; critical
reasoning
Unimaginative; not
inspirational
Teamworker Promotes team spirit Indecisive
Completer/
Finisher
Perfectionist Tends to worry about
nothing
Specialist Technically specialised Uninterested outside
own area

Dimensions of Project Success
 Efficiency – meeting the budget and
schedule
 Customer impact/satisfaction –
complex to define and evaluate – what is their
perception of success/failure? Does it match
yours?
 Business/direct success – delivering a
result for the business
 Future potential – again, somewhat difficult
and nebulous to ascertain
Meredith & Mendel, 2005
See also work of Westerveld – Profex p180 para 1.10

Critical Success Factors in Projects
 Clearly defined goals
 Competent project
manager
 Top management
support
 Competent project
team members
 Sufficient resources
allocated
 Adequate
communications
 Control mechanisms
 Feedback
capabilities
 Responsiveness to
clients
 Troubleshooting
mechanisms
 Project staff
continuity
 See p 158 – slight
variance
Pinto & Slevin (1987) in
Slack, Chambers & Johnston

Critical Success Factors
 Westerveld
 Leadership & Team
 Policy & Strategy
 Stakeholder management
 Resources
 Contracting
 Project management itself – scheduling,
budgeting etc
 P180 para 1.11

Ten Ways Projects may Fail
1. Failure to appreciate the
impact of a multi-project
environment on single
project success
2. Irrational promises made
due to a failure to take into
account the variable
nature of task
performance
3. Irrational promises made
due to a failure to take into
account the statistical
nature of project networks
4. Insufficient identification of
dependencies
5. Focus on, and active
management of, only a
portion of what should be
the full project
6. Reliance on due-date and
wasting of any safety
included in the project
7. Wasting of resources
through sub-optimal
utilisation
8. Wasting of the ‘best’
resources through over-
use, multi-tasking and
burn-out
9. Delivering original scope
when conditions/needs
change OR accepting
changes to scope without
sufficient impact analysis
10. Multi-tasking
Group ex – what others can
you add?

Project Failure
 Consider Greer – p 159 table 11.4
 Do you agree with these?
 Are they more logical than those
selected on previous page?

Session 10
Project Management and Strategic Practice

Learning Outcomes
 Critically evaluate the key characteristics of the various forms
of organisation structure and culture and their consequences
for project management
 Explain the key factors for consideration in choosing the best
organisational structure for a project
 Critically evaluate the use and value to organisations of
project management maturity models
 Evaluate the relationship between the business excellence
model and the project management excellence model
 Understand and explain what is meant by knowledge
management and organisational learning
 Demonstrate the strategic benefits and advantages gained
through knowledge management and organisational learning
 Appraise the impact of a organisational learning on the
management of projects in purchasing and logistics

The Functional Structure
Advantages
 The owning division
should have the
relevant expertise
 Specialists can share
their knowledge and
overtime expertise
accumulates
 It provides a clear
sense of ownership
and ensures
continuity
Disadvantages
 It may engender a
‘silo’ mentality. Other
specialists may not
be consulted
 Routine work may
take precedence
over the project
 Motivation may
suffer if the project is
perceived as a
professional
diversion
The
project

The Project Structure
Advantages
 Manager has full
authority over the
project with senior
management backing
 Grouping necessary
resources in the project
ensures rapid decision
making
 Relevant expertise is
drawn from other parts
of the organisation
 The project team has a
strong sense of identity
and common purpose
Disadvantages
 It is suitable only for
larger projects as it is
expensive to resource
 Isolationism can
develop leading to an
‘us’ and ‘them’ culture
 Team members may
lack technical expertise
or understanding of
user needs
Project A
Project B
Project C

The Matrix Structure
Advantages
 An individual project
manager takes
responsibility, usually
with strong senior
management support
 Relevant resources are
allocated as required,
giving flexibility as well
as expertise
Disadvantages
 Decision-making power
may still reside outside
the project team
 Members are likely to
be working only part-
time on the project and
have at least two
managers, which may
cause anxiety
 There may be a high
level of competition and
in-fighting for resources
The project

What is Organisational Culture?
‘The deeper level of basic assumptions
and beliefs that are shared by members
of an organisation, that operate
unconsciously and define in a basic
taken-for-granted fashion an
organisation’s view of itself and its
environment’
E. Schein (quoted in Johnson & Scholes)

A Typology of Culture
Type of culture Representation
Power A web – spider – power from the
centre
Role A Greek temple – columns –
highly defined structure – large,
hierarchical orgs
Task A net or matrix – suit
project/problem solving teams –
power from knowledge
People A cluster – members superior to
the org.
Source: Handy, Understanding
Organisations

Culture and Management Approaches
Characteristic of culture Impact on management style
Anglo-Saxon cultures Delegation a preferred managerial style
Highly centralised
authority
It is PM’s responsibility to seek out
information
International culture PM cannot count on being voluntarily
informed of problems by subordinates
Highly structured social
classes
Participative management is difficult to
practise; there is an assumption that the
more educated, higher-class manager’s
authority will be denigrated by using a
participative style
Highly structured social
system
The less direct managerial communication
tends to be
Adapted
from
Meredith &
Mantel, 2005

Culture
 Group exercise
 Why is it important for a project
manager to be aware of cultural issues
within an organisation?

Organisational Readiness
 The organisation places a high value on serving
customers
 The commitment of senior managers is long-lasting
 Key staff departments are positive about the prospect of
change
 The organisation has the human resources needed
 The organisation had the financial resources needed
 The organisation as a whole recognises the need for
fundamental change
 The organisation has none of the complacency and
arrogance that often follows a sustained period of
success
 The organisation is free of the scepticism, mistrust and
ambivalence that often follows a period of change
 The organisation’s experience with TQM has created an
environment that is receptive to change
Hammer & Stanton

Project Management Maturity
Matrix
Flat-liners Little or no progress in project performance
Mistakes repeated; performance stays flat
Improvers Some improvement
Performance improves slightly over time
Wannabes Follow every initiative going in order to catch the
leaders
World-class
performers
Set ever-increasing standards of performance
Flat-liners
Improvers
Wannabes
World-class

Project Excellence
 Project excellence comprises cross-functional
processes, project decision making, and team
organisation that enable firms to bring high-
quality products to market rapidly. Project
excellence builds on functional excellence (that
is, when a function has the necessary
resources, along with standards, procedures,
and tools, to be effective and efficient). Four
major elements are required to deliver projects
effectively. These elements include the people
and processes involved in development: project
governance, a defined development process,
project core teams, and the project decision
process are the four elements.

Project Excellence Model®
Appreciation
Users
Appreciation
Client
Appreciation
Contractors
Appreciation
Ind. parties
Appreciation
Project team
Project
results
Results areas
Policy &
strategy
Environment
Means
Contracting
Project
management
Leadership
and teams
Organisational areas
Source:
Westerveld
Feedback

EFQM Business Excellence Model
Business
Results
(15%)
Policy &
Strategy
( 8% )
Customer
Satisfaction
( 20% )
Resources
( 9% )
People
Management
( 9% )
People
Satisfaction
( 9% )
Impact on
Society
( 6% )
Processes
(14%)
Leadership
(10%)
Enablers Results

Knowledge Creation and Management
Internalisation
Learning by doing
Combination
Building a
‘knowledge system’
Externalisation
Articulating tacit
knowledge explicitly
Explicit
knowledge
Tacit
knowledge
To
Socialisation
Sharing experiences
Tacit
knowledge
Explicit
knowledge

A Learning Organisation is …
“… Capable of benefiting from the variety
of knowledge, experience and skills of
individuals through a culture which
encourages mutual questioning and
challenge around a shared purpose or
vision.”
Johnson & Scholes

Characteristics of a Learning
Organisation
 Existence of conflicting ideas and views
 Tolerance of failure
 Acceptance of ambiguity and uncertainty
with their attendant risks
 Surfacing of assumptions and explicit
debate widely within the organisation
 Tolerance of a diversity of views
 Tolerance of ‘organisational slack’

Using Learning and Discovery
 Start with a ‘loose’ project approach built
on many assumptions which are known
 Accept the risks associated with the
uncertainties
 Track and review assumptions on a
regular basis
 Modify the assumptions and activities in
the light of experience
 Gradually learn what works and what
doesn’t

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