Challenges to Organizing Projects: Uniqueness and short duration of project vs. long-term organizational activities | Multidisciplinary and cross-functional

nature of projects creates authority and responsibility dilemmas.

Appropriate PM Structure: balances the needs of the project with the needs of the organization

Structures

•Functional

oDifferent segments of the project are delegated to respective functional units

oCoordination maintained through normal management channels

oUsed when the interest of one functional area dominates the project/functional area has a dominant interest in the project’s success

•Matrix

oHybrid organizational structure is overlaid on the normal functional structure

Two chains of command (functional and project)

Project participants report to both managers

oMatrix structure optimizes the use of resources

Allows for participation on multiple projects while performing normal functional duties

Achieves a greater integration of expertise and project requirements

oWeak: Authority of the functional manager predominates and the project manager has indirect authority

oBalance: Traditional matrix form in which the project manager sets the overall plan and the functional manager determines how work

is to be done

oStrong: Resembles a project team in which the project manager has broader control and functional departments act as

subcontractors

•Projectized

oTeams operate as a separate units under the leadership of a PM

oFunctional departments are responsible for providing support for its teams

•Network

oAn alliance of several organizations for the purpose of creating products/services: A hub firm with strong core competencies

outsources key activities to a collaborative cluster of satellite organizations (such as construction projects)

Project lifecycle: Initiation & concept evaluation  Project  Post-project maintenance & operations

Governance: Selection & Investment authority  Division points & monitoring  Benefits realization; outcomes management

Typical Project Documents

Project Management Plan: How

the project will be managed, does

not include the details.

Project Plan: The detailed project

information that will be used to

process and execute the project

deliverable.

Project Charter : Created as an

initiation document either just before

it starts or in the very early life of the

project. Authorizes the PM to initiate

and lead the project. Roles &

responsibilities. Contains

governance, decision making

processes and rules, and escalation

channels.

Business Case: Document that “sells”

the product/service concept with details

BEFORE the project is a project.

Conducted after the general proposal

has been accepted by the organization.

Provides macro estimates (+/- 50%

estimates). High level descriptions,

plans and strategic fit. Benefits?

Project Management Plan

includes: Scope Management

Plan, Schedule, Cost, Risk,

Stakeholder, Communications,

Procurement, HR, Integration and

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Scope Management

•Scope Planning; Outcome: Scope statement

•Scope Definition; Define the project scope, establish priorities, create the WBS, integrate the WBS with the organization, code the WBS for the

I.S.

•Scope Verification; Outcome: Formal acceptance by stakeholders

•Scope Change Control; Outcome: Scope changes & lessons learned

- Project Scope: End result or mission of the project – in tangible and measurable terms

- Scope Statement: Clearly define the deliverable(s) for the end user; focus the project on successful completion of its goals, used by the project owner

as a planning tool and measurement of project success. Consists of project objectives, description/deliverables (high level requirements, limits and

exclusions), and business need (problem, justification), Tools: Product Analysis, Cost/Benefit Analysis, Alternatives identification, Expert judgment, and

social media.

- Establishing Project Priorities: Causes of project trade-offs (shifts in the relative importance of criterion related to cost, time, and performance

parameters); Managing the priorities of project trade-offs (Constraints, Enhancements, and Acceptances). Triple constraint: Cost, Scope, and Time. Be

wary of scope creep

- Creating the WBS: An hierarchical outline that identifies the products and work elements involved in a project, defines the relationship of the final

deliverable, and each descending level in the WBS (not how long, not who, and not how much) provides increasingly detailed definition of the project

deliverables. Top-down technique; Bottom-up technique; Random technique. Work package: Lowest level in the WBS (output oriented, must be

assignable). Identifiers.

- Integrating the WBS with the organization. OBS: Depicts how the firm is organized to discharge its work responsibility for a project, and provides a

framework to summarize organization work unit performance. Cost account: the intersection of the WBS and the OBS that is a budgetary control point

for work packages.

- Coding the WBS for the I.S. Coding System identifies: levels and elements of the WBS, organization elements, work packages, and budget and cost

information

GANTT Chart: A project planning tool that can be used to represent the timing and tasks required to complete a project.

Process Breakdown Structure

•Process-oriented projects: Driven by a series of steps of phases in which one phase affects the next phase

•Process Breakdown Structure (PBS): Defines deliverables as outputs required to move to the next phase, often defined at the program level,

and checklists for managing PBS

WBS = PM

OBS = HR

PBS = PMO, Business Unit

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Project Network: A flow chart that graphically depicts the sequence, interdependencies, and start and finish times of the project job plan of activities that

is the critical path through the network;

•Basis for scheduling resources

•Estimate of the project’s duration

•Basis for budgeting CF

•Puts the WBS on a time continuum

•Identifies activities that are critical, dependent, and/or parallel

•Used to create an overall schedule plan, and manage it

Terminology

•Activity: An element of the project that requires time

•Event: The result of completing one or more activity (milestones) the start of completion of an activity; does not take time

•Network: A combination of all activities and events

•Predecessor: Activities that come before a specific activity

•Successor: Activities that follow a specific activity

•Merge activity: An activity that has two or more preceding activities on which it depends

•Parallel activity: Activity that can occur independently and, if desired, not at the same time

•Burst activity: Activity that has more than one activity immediately following it

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