Law: What could went

wrong
Example 1: Roof Olympic Stadium Munich
Planned Cost: 30 Mio. DM
Real Cost: 180 Mio. DM
1.570 % Budget overrun

Example 2: Concorde
Planned Cost: 600 Mio. $
Real Cost: 10.000 Mio. $

Example 3: Toll-Collect
Planned Schedule: 28 Months
Real Schedule: 45 Months
Revenue Losses: 3.5 Mrd.

Lectures on Project Management / Dr. Wolfgang Glitscher / dreip-consult@outlook.com

 Anatomy of failed Projects
Unspoken reality: Too many projects are dead-on-arrival before they begin.

Business impact
Originally approved project schedule
of cancellation:
15-20% of all projects
are destined to fail
Danger signs already apparent (poor business
Schedule expended at
cancellation (50%)
False start (key resources & skills unavailable, lack
Budget expended at
cancellation (60%+)
Resource time & cost to Failure recognized by project team
conduct unplanned
shut-down (5-10%) *
Project finally cancelled
Projects in portfolio that
warrant proactive killing
(20%+) Shut-down effort *
Savings from early kill
decisions: Up to 40% 0 20% 30% 50% 100%
time, and 50% cost
Project Duration

Lectures on Project Management / Dr. Wolfgang Glitscher / dreip-consult@outlook.com 17

 Case: Microsoft

Lectures on Project Management / Dr. Wolfgang Glitscher / dreip-consult@outlook.com

 Case: Microsoft

Lectures on Project Management / Dr. Wolfgang Glitscher / dreip-consult@outlook.com

 What is a Project?

Lectures on Project Management / Dr. Wolfgang Glitscher / dreip-consult@outlook.com

 Definition

A project is a temporary endeavor undertaken

to create a unique product or service.
Project Management Institute PMI
Definition follows the PMBOK

Lectures on Project Management / Dr. Wolfgang Glitscher / dreip-consult@outlook.com

 And another definition
is the art of creating the
illusion that any outcome is the result of a series of
predetermined, deliberate acts when, in fact, it was
dumb luck

Harold Kerzner: Project Management A system approach to planning,

scheduling an controlling

Lectures on Project Management / Dr. Wolfgang Glitscher / dreip-consult@outlook.com

 Why Projects?
Companies generally undertake projects to change the
business in response to business drivers - market pressures,
cost control, technology, etc.

-to-day work flows

vertically in line organizations. Project
work requires effective application of
resources in a horizontal work flow.

Lectures on Project
11. Oktober 2015 Management / Dr. Wolfgang Glitscher / dreip-consult@outlook.com Folie 23
 The Move to Project Management
Project Management supports two critical needs of

1. Achievement of key business 2. Effective use of all resources

Human
Cost Equipment
Time Facilities
Performance Materials
Quality Money
Continued customer interest Information

Folie 24
Lectures on Project Management / Dr. Wolfgang Glitscher / dreip-consult@outlook.com
 Applications of Project Management
New product launch & manufacturing

Consumer protection (product safety, product liability)

Compliance with regulations & standards

Cost & profitability pressures

Technology advances (e.g., e-Commerce)

Lectures on Project Management / Dr. Wolfgang Glitscher / dreip-consult@outlook.com

 Benefits of Project Management
Forces integration of work across functional areas

Processes to validate & manage scope of the work

Schedule & time management

Optimized use of human resources

Cost control

Risk management

Quality management

Improved communication

Lectures on Project Management / Dr. Wolfgang Glitscher / dreip-consult@outlook.com

 Key Attributes of a Project
Uniqueness
specific, one-time objectives result in a product/service that is different in some
distinguishing way from all other products/services, even those that are similar

Temporary
has a definite start & finish

Uncertainty/Risk
because of their uniqueness, projects are almost always journeys of discovery

Multi-functional
crosses organizational boundaries in scope, impact & resource consumption

Temporary staff
matrix organization

Consumes resources
time, money, equipment, human resources

Variable size
scope, time, participants, business functions involved

Lectures on Project Management / Dr. Wolfgang Glitscher / dreip-consult@outlook.com

 Defining Project Success

Today, Project Success has been modified to include completion:

- within the allocated time period
- within the budget cost
- at the proper performance or specification level
- with acceptance by the customer / user
- with minimum or mutually agreed upon scope changes
- without disturbing the main work flow of the organisation
- without changing the corporate culture

Lectures on Project Management / Dr. Wolfgang Glitscher / dreip-consult@outlook.com

 What is Project Management?

Lectures on Project Management / Dr. Wolfgang Glitscher / dreip-consult@outlook.com

 Definition

Project Management is the process that applies

knowledge, skills, tools and techniques to a project
in order to satisfy stakeholder needs and
expectations.

Lectures on Project Management / Dr. Wolfgang Glitscher / dreip-consult@outlook.com

 Why Project Management?

Lectures on Project Management / Dr. Wolfgang Glitscher / dreip-consult@outlook.com

 What did you see?
Dome of Cologne
14. - 15. century Hohenzollernbridge
End of 19. century

ICE 3
2003

You see 700 years of Projectmanagement !

Lectures on Project Management / Dr. Wolfgang Glitscher / dreip-consult@outlook.com
 Management Challenges
Example

Shortens of Model Cycles

Dynamic of Innovation

EBS
ABS

GPS

Cell Phones

Vehicle Control Systems

Lectures on Project Management / Dr. Wolfgang Glitscher / dreip-consult@outlook.com

 Challenges for Enterprises
Re-Invent the Business

Transform the Business Run by Projects

Grow the Business

Risk

Run the Business

Example SIEMENS:
(71% of Costs Turnover 2005: 78 Mrd. ,
As an average of 50% gained by Projects
German Enterprises)
Source: FH München, Prof. Dr. Gröger, 2005

Market Position
Lectures on Project Management / Dr. Wolfgang Glitscher / dreip-consult@outlook.com