KSU British Aircraft Corporation Case Study

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Chapter 1
What is Project Management?
Project Management for Engineering,
Business, and Technology
Prepared by
John Nicholas, Ph.D.
Loyola University Chicago
Management Functions
Planning
Purpose or Goal
Control
Organizing
Change
Leadership
Information Classification: General
Characteristics of Projects
◼
Goal-oriented
❑
Somewhat unique
◼
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Cross-disciplinary
Cross-organizational
Somewhat unfamiliar and risky
❑
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Temporary; has target completion date and target cost
Cross-functional
❑
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Non-routine
Time- and resource-constrained
❑
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Aims at a specific end result or deliverables
Involves something new or different
Something is at stake
Follows logical sequence or progression of phases or
stages
Information Classification: General
What is “Project Management?”
Simple Definition
◼
Management to accomplish project goals.
Information Classification: General
What is “Project Management?”
Longer Definition
Management to
◼ Define and execute everything necessary to
complete a complex system of tasks
◼ Achieve project end results that might be
unique and unfamiliar
◼ And do it
❑ by target completion date
❑ with constrained resources
❑ with an organization that is cross-functional
and newly-formed
Information Classification: General
Features of Project Management
1. A single person, the project manager, heads the
project organization. The project organization
reflects the cross-functional, goal-oriented, temporary
nature of the project.
2. The project manager is the person who brings
together all efforts to meet project objectives.
3. Project requires a variety of skills and resources, and
is performed by people from different functional
areas or by outside contractors.
4. The project manager integrates people from different
areas and disciplines in the project.
Information Classification: General
Features of Project Management (Cont’d)
5. Project managers focus on delivering particular
products or services on time and on budget.
Functional managers might be responsible for providing
project workers and resources from their departments.
Conflict may arise between project and functional
managers.
6. A project might have two chains-of-command, one
functional and one project, so people working in a
project report to both a project manager and a functional
manager.
Information Classification: General
Features of Project Management (Cont’d)
7. Decision making, accountability, outcomes, and
rewards are shared between:
• the project team
• supporting functional units and
• outside contractors.
8. Although the project organization is temporary, usually
the functional or subcontracting units from which it is
formed are permanent.
When a project ends, the project organization is
disbanded and people return to their functional or
subcontracting units.
Information Classification: General
Project Management in History
The role*of the project manager has existed
for a long time. Two examples:
•The title of project manager is recent and became common starting
in the 1950’s.
Information Classification: General
1413 Santa Maria del Fiore, Florence, Italy
Architect, Manager:
Filippo Brunelleschi
Photo: John Nicholas
Information Classification: General
Santa Maria del Fore
Brunelleschi’s mandate
To “provide, arrange, compose or
cause to have arranged and
composed, all and everything
necessary and desirable for the
building, continuing, and completing
the dome.”
Circa 1413
Information Classification: General
1939 internal memo to establish new role,
the “project engineer”
Project Engineers should in effect be Chief Engineers
for their particular project
…they should then have at all times a general
knowledge of the entire company situation
concerning their project and…their thinking will be
guided by this picture…
[They] should appreciate the functioning of each of
the subdivision [of the project, including]
1. Product (engineering)
2. Sales
3. Manufacturing
4. Quality
5. Service
Information Classification: General
Recent History of Project Management
◼1958
Publication of many articles on project
management
◼ 1961 Systems Managers at IBM
◼
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1969 PMI founded by 5 volunteers
1992 5000 members
2004 142,000 members
2005 over 170,000 members worldwide in 120
countries
2008 267,000 members, 170 countries
2011 over 500,000 members, 185 countries
Latest figures: more than 700,000 members, 195
countries
Information Classification: General
Where Do You Need Project Management?
Answer: Situations where the work …
◼
Is Unfamiliar
The job is different from the ordinary and routine. Requires
that different things be done, the same things be done
differently, or both.
◼
Requires Greater Effort
The job requires more resources (people, capital,
equipment, etc.) than are normally employed by the
department or organization.
◼
Dynamic Environment
The industry or environment involves high innovation, high
competition, rapid product change, shifting markets.
◼
Continued…
Information Classification: General
Where Do You Need Project Management?
Answer: Situations where the work …
◼
Requires a Multifunctional Effort
The job requires lateral relationships between the areas
to coordinate and expedite work and reconcile conflicts.
◼
Could Impact the Reputation of the Organization or
Other Stakeholders
Failure to satisfactorily complete the work could result in
financial ruin, loss of market share, damaged reputation,
loss of future contracts, or other problems for the
stakeholders or larger environment.
Information Classification: General
Management by Project (MBP): A
Common Approach
◼
Managing any kind of work as a discrete
project
◼
An undertaking or set of activities is planned
and managed as a project
◼
A team is formed for the sole purpose of
performing the work, and a project manager
assigned to guide and coordinate the work.
Information Classification: General
Different Forms of Project Management
Basic Project Management
◼
◼
◼
◼
Most common project approach
Project manager has authority to plan, direct, organize,
and control the project from start to finish.
PM and functional managers are on the same
organizational level.
Implemented in two widely used forms—pure project and
matrix.
❑ In pure project, the project is a complete, self-contained
organization
❑ In matrix, the project is created from resources
borrowed from the
functional units.
Information Classification: General
Different Forms of Project Management
Program Management
◼
◼
Similarity between programs and projects
❑ both defined in terms of goals or objectives about what
must be accomplished
❑ both emphasize time period over which goals or
objectives are to be pursued
❑ both require plans, budgets, and schedules for
accomplishing specific goals.
Differences between programs and projects
❑ Program extends over a longer time horizon
❑ It consists of several parallel or sequential work efforts or
projects coordinated to meet a program goal.
❑ Projects within a program share a common goal and
resources, and often are interdependent.
Information Classification: General
Different Forms of Project Management (cont’d)
New Venture Management
◼
◼
◼
◼
Used for generating new products or markets.
Team is specially created to find products/markets that fit
the organization’s specialized skills, capabilities, and
resources.
After defining a product, the team may go on to design
and develop it, then determine means for producing,
marketing, and distributing it.
Similarities between project groups and venture groups
❑ Focus on a single unifying goal.
❑ Multidisciplinary, with experts and managers from
various functional areas
❑ Action-oriented and dedicated to change.
❑ Temporary.
Information Classification: General
Different Forms of Project Management (cont’d)
Product Management
◼
◼
◼
A single person has authority to oversee all aspects
of a product’s production scheduling, inventory,
distribution, and sales
Like the project manager, the product manager
communicates directly with all levels and functions
within and outside the organization
The product manager coordinates functional units
so that the total effort is directed at the
accomplishment of product goals.
Information Classification: General
Different Forms of Project Management (cont’d)
Project Portfolio Management
◼ Projects and programs are aligned with
company goals
◼ Projects and programs are selected and
grouped into “portfolios” (similar to investment
portfolios)
◼ The objective: the right projects
◼ Decisions about selecting (adding), prioritizing,
cancelling projects based on financial
performance, resource demands, risks, etc.
◼ Resources are allocated to projects
Information Classification: General
Project Environments
◼
New Product and Systems Development
Projects
• SpaceShipOne and the X-Prize Competition
• The Development of “Product J” at Dalian
Company
Information Classification: General
Project Management Settings (Cont’d)
◼
Construction Projects
❑
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Small Projects at Delamir Roofing Company
Project Management in the Services Sector
❑
Auditing at CPAone
❑
Nonprofit Fundraising Campaign Project: Archdiocese of
Boston
Public Sector and Governmental Project & Programs
❑
Disaster Recovery
❑
NASA Project and Program Management
Information Classification: General
Miscellaneous Projects
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Maintenance
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Events
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Implementation of change.
Information Classification: General
Chapter 2
Systems Approach
Project Management for Engineering,
Business, and Technology
Prepared by
John Nicholas, Ph.D.
Loyola University Chicago
Definition of System
A system is an organized or complex whole; a
group of parts interacting in a coordinated
way.
1. The parts of the system affect the system
and are affected by it
2. The group of parts does something
3. The group is of particular interest. What you
define as the system depends on your
purpose.
System Concepts and Principles
Goals and Objectives
◼ Human-made systems are designed to do
something; they have goals and objectives
that are conceived by people.
◼
In designing a human-made system, the
place to start is by defining the goal of the
system and a hierarchy of objectives that
relate to the aspects the system.
System Concepts and Principles
Elements and Subsystems
◼
Systems can be broken down into smaller parts.
◼
These parts in combination form “the assemblage of
parts” that constitutes the system.
◼
The smallest part of a system is an element.
◼
The parts of the system might themselves also be
systems; these are called subsystems.
A subsystem is a system that functions as a component or
part of a larger system.
A Company as a System
The “whole” system
Company
Management
Personnel
Marketing
Production
Finance
Research and
Development
Functional subsystems
Production
manager
Scheduling
Production subsystem
Manufacturing
Manufacturing
subsystem
Team A
Supervisor
Team B
Inventory
Elements
System Concepts and Principles
Attributes
◼ Systems, subsystems, and elements each have
distinguishing characteristics called attributes
◼
These describe or express the condition of system,
subsystem, or element in qualitative or quantitative
terms.
◼
In human-made systems, many of the attributes are
designed into the system so that the system
performs as required.
System Concepts and Principles
Environment and Boundary
◼
The environment refers to anything that influences
the behavior or outcome of the system, yet lies
beyond the decision maker’s or stakeholder’s ability
to control
◼
The system is separated from its environment by a
boundary. The boundary might be somewhat
obscure, and it might be difficult to distinguish the
system from its environment.
System Concepts and Principles
To distinguish the system from its environment
ask two questions:
Is it relevant to the system?
Can the decision maker
control it?
Yes
No
Yes
System
No
Environment
The Irrelevant
Environment
System Concepts and Principles
System Structure
◼
Elements and subsystems are linked together
by relationships. The form of the relationships
is referred to as the structure of the system.
◼
Most systems, including projects, can be
conceptualized as hierarchical and network
systems.
Hierarchical structure
X
A
a
B
b
c
d
C
e
f
g
Network structure
e
d
c
b
a
g
f
Two ways of conceptualizing a project
System Concepts and Principles
Inputs, Process, Outputs, Interfaces
◼ Human-made systems achieve objectives by converting
inputs into outputs through a defined process.
◼
Outputs: end-result of a system and the purpose for which
the system exists.
◼
Inputs: the raw materials, resources, or prior steps
necessary for the system to operate, produce outputs, and
meet objectives.
❑
Feedback: Input that originates from the system itself.
System Concepts and Principles
Inputs, Process, Outputs, Interfaces (Cont’d)
◼
Process: means by which the system transforms inputs
into outputs.
❑ One goal of system design is to create a process that
produces the desired outputs and meets system
objectives effectively, and minimizes consumption of
inputs and production of wasteful outputs.
◼
Where the output of one element becomes the inputs of
the other, they are said to interface.
Input-process-output relationship
Inputs
Process
Feedback
Outputs
System Concepts and Principles
Constraints and Conflicts
◼ Systems constraints are limitations that inhibit the
ability of a system to reach goals and objectives. Time
and money are two universal constraints.
◼ In human-made systems, the objectives of the
subsystems sometimes conflict with each other, which
reduces the ability for them or the overall system to
realize their objectives.
◼ Removing
conflict between the objectives of
subsystems to enable the overall system to meet its
objectives is called integration.
System Concepts and Principles
System Integration
◼ For a system to perform effectively and achieve its
goal, all of its elements must work in unison.
◼
Designing, implementing, and operating a system to
achieve pre-specified objectives and requirements
through the coordinated functioning of its elements
and subsystems is called system integration.
System Concepts and Principles
Open Systems and Closed Systems
◼ A closed system is one that is viewed as selfcontained; “closed-systems thinking” means to focus
on the operation, structure, and processes of a
system without regard to the environment.
◼
An open system interacts with and adapts to its
environment.
◼
Any system that must be adaptable to its
environment must be treated as an open system.
◼
Human organizations and social systems are open
systems.
System Concepts and Principles
Natural versus Human-Made Systems
◼
Natural systems came into being by natural
processes (e.g., animal organisms and planetary
systems).
◼
Human-made systems are designed and operated
by people (e.g., communication systems and human
organizations).
◼
Projects exist for the purpose of creating or
enhancing human-made systems (or altering natural
systems).
Systems Approach
The systems approach
◼ Acknowledges that the behavior of any one
element affects the behavior of others and
that no single element can perform effectively
without help from the others.
◼
Recognizes interdependencies and causeeffect relationships among elements.
Systems Approach (cont’d)
◼
Retains attention on the overall system and
the ultimate goal
❑
◼
Allows focus on the parts, but only in regard to
their contribution to the whole system
Avoids actions that focus exclusively on parts
of the system, since such actions are
suboptimal for the total system.
Systems Approach Methodology
An Orderly Way of Appraisal
The systems approach is a methodology for solving
problems and managing systems that accounts for
1. The objectives and the performance criteria of the
system.
2. The environment and constraints of the system.
3. The resources of the system.
4. The elements of the system, their functions,
attributes, and performance measures.
5. The interaction among the elements.
6. The management of the system.
The methodology commonly employs models
System Models
◼
◼
A model is a simplified representation of the world; it
abstracts the essential features of the system under
study.
A physical model is a scaled-down abstraction of the
real system. It includes some aspects of the system
and excludes others.
❑
◼
Example: model airplane.
A conceptual model depicts the elements, structure,
and flows in a system in terms of a schematic
diagram or mathematical formulation.
❑
Example: population dynamics schematic (next)
Conceptual model of population dynamics
Deaths
Initial age
group
aging
Intermediate
age group
Births
Migration
aging
Terminal
age group
System Life Cycle
◼
All living organisms follow life-cycle stages
ConceptionC
Nonliving systems life cycle
• Conception
• Design
• Fabrication
• Installation
• burn-in
• Operation
• Deterioration
• or obsolescence
• Decommission
Birth
Growth
Maturity
Decline
Death
Systems Engineering
◼
◼
◼
The science of designing complex systems in their
totality to insure that the components and
subsystems making up the system are designed,
fitted together, checked, and operated in the most
efficient way.
The conception, design, and development of
complex systems where the components themselves
must be designed, developed, and integrated
together.
A way to bring a whole system into being and to
account for its whole life cycle—including operation
and phase-out—during its early conception and
design.
Dimensions of Systems Engineering
1
3
2
Dimensions of Systems Engineering (Cont’d)
1. SE is a multifunctional, interdisciplinary,
concurrent effort.
❑
❑
Systems engineers work with the system’s
stakeholders to determine their needs and what
the system must do to fulfill them.
The needs become the basis for defining the
system requirements, which specify what the
system will do.
Dimensions of Systems Engineering (Cont’d)
It addresses the system’s structure and
elements—its functional and physical
design.
2.
❑
❑
System elements and subsystems are designed
to perform the functions necessary to satisfy
stakeholder objectives and requirements.
The design effort focuses on how the system will
meet the requirements.
Dimensions of Systems Engineering (Cont’d)
It takes into account the way the system will
be produced, operated, maintained, and
finally disposed of—the entire system life
cycle.
3.
❑
This helps insure that the system will be
economical to develop, build, operate, and
maintain, and friendly to users and the
environment.
Systems Engineering Process
Forsberg and Mooz’s V-model (adopted from K. Forsberg and H. Mooz in Software Requirements Engineering, 2nd
ed., ed. R. Taylor, M. Dorfman, and A. Davis (Los Alamitos, Calif.: IEEE Computer Society Press, 1997): 44-77).
Systems Engineering Process (cont’d)
Creating a system concept that will satisfy
requirements involves a series of steps to
define the subsystems and elements of the
system. The process is an iterative cycle of
1)
2)
3)
top-down analysis of details (decomposing the
system into smaller parts)
bottom-up synthesis (building up and integrating
the parts into successively larger parts)
evaluation (checking to see that results meet
requirements)
Systems Engineering Process (cont’d)
The downstroke of the V represents
subdividing functions of the system into
subfunctions and requirements.
◼
❑
At each level the process of working with
customers to define requirements repeats, except
the “customer” becomes the function at the next
higher level and the question becomes, What must
the functions at this level do to meet the
requirements of the next higher level function?
Systems Engineering Process (cont’d)
◼
❑
❑
❑
❑
◼
◼
❑
❑
The upstroke of the V represents
assessing “design alternatives” to satisfy requirements
implementing design decisions—converting designs
into physical parts
integrating the parts
verifying that the integrated parts meet the
requirements.
The alternatives involve procuring available parts or
designing and building new ones.
Parts are checked individually and then assembled into
modules and again tested.
If tests reveal that parts or modules do not meet
requirements, the process returns to the downstroke of
the V to determine why.
the analysis-synthesis-evaluation cycle repeats.
Project Management is a Systems
Approach
◼
◼
It is total-system oriented
It emphasizes achievement of the overall
mission and objectives of the project
❑
◼
It optimizes the overall project rather than the
elements or subsystems of the project
It recognizes interaction and synergy among
elements of the project
❑
Outputs from one element provide inputs to other
elements.
Project Management is a Systems
Approach (Cont’d)
◼
It recognizes interactions and interdependencies between project elements and with the
environment
❑
Organizations, responsibilities, knowledge, and
data are integrated toward achieving overall
project objectives.