Project

Management
Session 3

INSTRUCTOR: DR. NITIN KOSHTA

QUANTITATIVE METHODS & OPERATIONS MANAGEMENT

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 What we have studied so far
❑Project Management

❑Not just construction and large infrastructure projects; New product development; Mergers and
acquisitions; Advertising; small projects

❑Program > Project > Task

❑The iron triangle – scope, time, cost

❑Characteristics – unique, one-time occurrence, finite duration

❑Project life cycle – defining, planning, execution, and closing

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Project Life Cycle

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Project Life Cycle
❑Conventional wisdom →

❑Early in life cycle – project scope is of prime importance over cost and schedule

❑Periods of high activity – cost is more important

❑Final stage – schedule is of paramount importance.

❑Recent trend →scope and schedule are more important than cost in all stages.

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Another Possible Project Life Cycle

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 Risk During the Life Cycle
❑Uncertainty about our ability to meet project goals due to various factors in the project life
cycle

Make new forecasts

about project scope, As the project
time, and cost either develops, the degree
at fixed intervals in of uncertainty about
the life of the project the final outcome is
or when specific reduced.
milestones are
reached

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Agile Project Management
❑Waterfall method – traditional method. One phase of the project is completed before the next
starts.

❑Six-sigma process improvement projects

❑Define → Measure → Aanlyse → Improve → Control

❑2001 – 17 software developers

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Agile Project Management
❑In a software development project – the functionality to be incorporated into new software is
often not well understood at the beginning of the project, probably due to constantly evolving
technology and more sophisticated customers.

❑Continuously update the requirements throughout the project.

❑Agile project management approaches were developed to provide greater flexibility to respond to
changing customer requirements, and ultimately complete projects more efficiently.

❑Increasingly used in a wide variety of industries.

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Agile Project Management
❑Individuals and interactions over processes and tools

❑Working software over comprehensive documentation

❑Customer collaboration over contract negotiation

❑Responding to change over following a plan

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Agile Project Management
Individuals and interactions over processes and tools

❑Build cohesive teams

❑Teams must be staffed with people who can work efficiently with other

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Agile Project Management
Working software over comprehensive documentation

❑Focus on producing products with working functionality

❑Minimal meetings, documentation, and other administrative activities.

❑Make documentation easier.

❑Team spends more time on work and less time on administrative activities.

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Agile Project Management
Customer collaboration over contract negotiation

❑Waterfall approach → customers are involved at the start of the project, when the scope needs
to be changed, and at the end of the project.

❑Developing a contract at the start of the project may not be a good idea, as least is known about
the project.

❑Agile →values fostering a collaborative relationship between the project team and the customer.

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Agile Project Management
Responding to change vs following a plan

❑Flexibility to adapt to changing requirements is invaluable to the pursuit of developing superior

products and services.

❑Waterfall → the team relies on detailed and structured change management procedures that
ultimately discourage changes and stifle creativity.

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Agile Project Management
Principles of Agile

❑Highest priority is to satisfy the customer through early and continuous delivery

❑Welcome changing requirements, even late in development.

❑Deliver working software frequently, from a couple of weeks to a couple of months.

❑Business people and developers must work together daily throughout the project.

❑Give environment and support to the team. Trust them to get the job done.

❑Face-to-face conversation for effective and efficient communication.

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Agile Project Management
Principles of Agile

❑Working software is the primary measure of progress

❑The sponsors, developers, and users should be able to maintain a constant pace indefinitely.

❑Continuous attention to technical excellence and good design enhances agility.

❑Simplicity

❑The best architectures, requirements, and designs emerge from self-organizing teams

❑At regular intervals, the team reflects on how to become more efficient, then tunes and adjusts
its behaviour accordingly.

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Agile Project Management
Agile methodologies

❑Scrum

❑Kanban

❑Extreme Programming

❑Crystal

❑Etc.

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Project Manager’s Role
❑The project managers perform functions similar to any other manager, i.e., plan, schedule,
motivate, and control.

❑What is unique?

❑They manage temporary, non-repetitive activities to complete a fixed-life project.

❑Create team and organization, unlike functional managers who take over existing operations.

❑Decide how things should be done instead of simply managing set processes.

❑They are typically the direct link to the customer and must manage the tension between
customer expectations and what is feasible and reasonable.

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Project Manager’s Role
❑Integrate all aspects of the project

❑Ensure that the proper knowledge and resources are available when and where needed

❑Provide direction, coordination, and integration to the project team, which is made up of part-
time participants loyal to their functional departments.

❑Work with outsiders such as vendors, suppliers, and subcontractors

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Project Teams
❑First exposure to project management occurs while working as part of a team assigned to
complete a specific project.

❑Sometimes, this work is full-time, but in most cases, people work part-time.

❑Juggling day-to-day commitments with additional project responsibilities.

❑Good team/bad team

❑Project management tools and concepts

❑How to avoid the dangers of scope creep, manage the critical path, negotiate, communicate,
understand project priorities, and make independent decisions.

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Project Initiation

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Project Classification
❑There are three basic kinds of projects

❑Compliance

❑Operational

❑Strategic

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Project Classification
❑Compliance Projects

❑These projects are typically those needed to meet regulatory conditions required to operate in a
region. Hence, they are called “must-do” projects.

❑Compliance and emergency projects usually have penalties if they are not implemented.

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Project Classification
❑Operational Projects

❑These projects are needed to support current operations

❑To improve the efficiency of delivery systems, reduce product costs, and improve performance.

❑These have limited scope and cost, and require only immediate manager approval.

❑Example, choosing to install a new piece of equipment

❑TQM projects are examples of operational projects.

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Project Classification
❑Strategic Projects

❑These projects directly support the organization’s long-term mission.

❑They are frequently directed towards increasing revenue and market share.

❑Example, new product, new technologies

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Business Case
❑A project begins with a business case being presented to a funding entity by some senior
management group within the organisation.

❑A business case explains how the benefits of a project overweigh its costs and why it should be
executed.

❑A business case typically includes the strategic justification for the project, its monetary cost, the
expected benefits, any known or anticipated risks, the expected time of completion, and who will
be responsible for each of the phases of the project.

❑It includes non-monetary factors such as expected behavioural impacts, increase in efficiency,
service improvements, competitiveness effects, etc.

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Business Case
How to write a business case

❑Identify the business problem → should be aligned with business goals. To solve specific
business problems or create a business opportunity.

❑Identify the alternative solutions → identify different ways of solving the problem

❑Recommend a preferred solution → rank the solutions on the basis of different criteria

❑Describe the implementation approach

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