NEW OMSE

Topic 5 Project Management

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BUSINESS

What is a Project?

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A project is 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, 2013)
Projects all have in common:
An objective (definable end result or output)
Are unique in some way (one-off)
Are temporary (beginning and end)
A degree of complexity
A degree of uncertainty
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 Managing projects is, it is

said, like juggling three
balls cost, quality and
time. Programme
management.is like
organising a troupe of
jugglers all juggling three
balls and swapping balls
from time to time

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Complexity and uncertainty as project dimensions

High
Basic
research

Uncertainty

Oil and gas

exploration

Low

Antarctic
expedition

Military
campaign

Channel
Tunnel

Airport
Product
development Advertising
campaign Chemical
plant
Novel
writing
Individual

Wedding

Company
audit

Group

Organization

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Thames
Barrier

Airbus

Motorway
Oil
tanker
Multiorganization

Complexity

Low

Euro
project

Car plant
Nation

Multi-nation

High

Success Factors for Projects

Clearly defined goals
Competent project
manager
Top-management
support
Competent project team
members
Sufficient resource
allocation
Adequate
communications
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Control mechanisms
Feedback capabilities
Responsiveness to
clients
Troubleshooting
mechanisms
Project staff continuity

Stages in project management

Stage
1

Stage
2

Stage
3

Understanding
the project
environment

Project definition

Project planning

Stage
4

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Technical
execution

Changes

Corrective
action
Stage
5
Project control

Stage 1 - The project environment consists of all the

factors that can affect the project

Geo-social
environment
Climatic,
Cultural
Business
environment
Customers
Competitors
Suppliers/
subcontractors

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The project

Econo-political
environment
Economy
Government
Internal
environment
Company strategy
Resources
Other projects

Stage 2 - Project definition

Its Objectives the end state that project management is

trying to achieve. Can be broken down into Purpose, End
Result and Success Criteria
Its Scope the exact range of the responsibilities taken on
by project management
Its Strategy how project management is going to meet
its objectives

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The Iron Triangle of Project Management

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Stage 3 - The project planning

process
Adjust as
necessary
Identify
the
activities
in the
project

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Estimate
times and
resources
for the
activities

Identify the
relationships
and
dependencies
between the
activities

Identify
time and
resource
schedule
constraints

Fix the
schedule
for time
and
resources

Gantt chart
Project to design an information interface for a new sales knowledge
management system in an insurance company
Activity
a Form and train user group
b Install systems
c Specify sales training
d Design initial screen interface
e Test interface in pilot area
f Modify interface

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10

20
30
Time
(days)

40

50

60

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Critical Path Method - activities and network for

simple decorating project
Immediate
predecessors

Activity
a
b
c
d
e
f

Remove furniture

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Remove furniture
Prepare bedroom
Paint bedroom
Prepare kitchen
Paint kitchen
Replace furniture

None
a
b

1
2
3

a re
p
re oom
P
b
dr
e
b
dP
rep
are
kit
ch
en

Activity duration
(days)

2
c, e

cP
ain
tb
ed
roo
m
f
int
a
e P

en
h
c
it

Replace furniture

Network analysis for simple decorating project

B
2

C
3

A
1

F
1

D
1

E
2

EST = Earliest
Start Time DAY 3
LST = Latest Start
Time DAY 5

For example:
A= activity reference for removing furniture.
1 = activity duration in days

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Why use a time plan or network chart?

Determining the order of activities
Defining what could cause significant delay
What other tasks might get in the way of
completion?
Scheduling Implications:
Knowing when activities will be carried out
Necessary resources have to be in place for
critical activities
Defining constraints: when are people not
available, spotting long lead times, clashes
with other projects
May be necessary to re-plan
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PERT project/programme evaluation and review

technique
a statistical technique for measuring and forecasting
progress in research and development programs
applied as a decision-making tool designed to save
time in achieving end-objectives, and is of particular
interest to those engaged in research and development
programs for which time is a critical factor.
takes recognition of three factors that influence
successful achievement of research and development
program objectives: time, resources, and technical
performance specifications

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Stage 4 - Project Execution

build the physical project
deliverables and present them
to your customer (internal or
external) for signoff
usually the longest phase in
the project life cycle and it
typically consumes the most
energy and the most
resources.

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Stage 5 Project Control

Essential link between

planning and doing
How to monitor
How to assess
performance
How to intervene to
bring it back on track

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Project Task
In your groups you are going to be the Project Manager for the
development of a new supply chain for a coffee shop.
You will only need to focus on developing the supply chain for the
coffee in the initial phase.
You need to think about what it is you need in order to be able to
serve your customers with a high quality cup of coffee.
You will need to refer back to the previous weeks (input and
output model, selecting supply chains and the 5 Performance
Objectives). You are also expected to do your own independent
research.
The seminar activity sheet also has this information included.

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