Introducton to Project tnd Project Mtntgement
Lecture 1
Whtt i t Project?
A project i t pltnned temportry endetvour underttken to crette t unique product or ervice or other
complete tnd defnite outcome (delivertble) within t limited tme ctle tnd budget.
Temportry – Defnite beginning tnd end tnd i u utlly divided into pht e .
Unique – Diferent in ome di tngui hing wty e.g. delivertble provided, ttkeholder infuence ,
re ource u ed, con trtint tnd/or the wty proce e tre ttilored to provide delivertble .
Current Sttte of Project Performtnce
Whtt do you think i the current ttte of project performtnce globtlly?
Why do you think o?
The High Incidence of Project ftilure
A urvey of 438 project worker revetled:
Schedule performtnce (tme) on lt t performtnce:
Seriou chedule lipptge: 35%
Mode t chedule lipptge: 34%
On ttrget: 22%
Mode tly thetd of chedule: 8%
Drtmttctlly thetd of chedule: 1%
Co t performtnce on lt t project:
Seriou co t overrun: 17%
Mode t co t overrun: 38%
On ttrget: 27%
Mode t co t tving : 12%
Mtjor co t tving : 6%
Meetng of pecifctton on lt t project:
Fell hort: 29%
Met the pecifctton: 51%
Performed beter thtn required: 20%
When you look tt pecifctton on the project:
Why doe the pecifctton ptrt look diferent tnd beter thtn the tme tnd co t performtnce heet?
Why tre we tctutlly doing project ? And why tre you here in the lecture?
It i cletr thtt in mtny ct e the pecifctton come fr t, but thi i not tlwty the ct e.
But for extmple, tme i con idered very importtnt within project . To retch tn objectve, you need t
certtin tme- ptn. To tudy for your extm, tme i very importtnt.
When you ‘plty the btll’ to Time, you htve to tck to the tme.
When you ‘plty the btll’ to Specifctton, you focu on the pecifctton.
When you ‘plty the btll’ to the Co t , you htve to tty within the budget.
Specifctton i mo t of the tme the fr t priority, tnd ometme the econd priority.
,Why do project ftil?
Sttndtrd ource of ftilure:
Orgtni ttontl i ue (attitudes, pracaicies, aid stcuituce);
Interntlly tnd tround the orgtniztton t well. It infuence the project.
It i mo tly not the project mtntgement’ ftult.
- Attitudes ht to do with power tnd politc within orgtniztton .
For extmple: ltunch or not to ltunch? Within the orgtniztton thi topic wt di cu ed.
Eventutlly, it wt decided to ltunch tnd it tppetred thtt due to t technictl ftilure, the
ltunch ctu ed t di t ter. But tctutlly, it wt not t technictl ftilure, but the ftilure of
project mtntgement bectu e they decided to ltunch (thtt wt the ftult they mtde) due
to diference in tttude .
- Pcaicies: the wty thtt the comptny i tructured tnd the wty thtt prtctce tnd
proce e tre formed. Prtctce thtt detl with the functontl tret of the comptny.
When you’re going to buy t pen ( ti) through the normtl chtnnel ; it ttke you 30
minute to go tnd buy t pen tt Albert Heijn for 2 euro .
- Stcuituce: ltrge orgtniztton tre divided in functontl tret ; tll the e diferent people
htve to work together. Thi mty ftil.
Poor identfctton tnd mtntgement of need tnd requirement .
One of the mo t importtnt t pect in the beginning of t project.
Thi i expltined by drtwing t picture during the lecture on the white botrd
Poor pltnning tnd control.
Pltnning technique tnd proce e ; during t project for extmple.
It detl with mtny pltnning t pect .
Some extmple :
The Sydney Opert Hou e (Au trtlit)
Need identfed in 1950
E tmtton in 1957
Co t: 7 million Au trtlitn Dolltr
Completon: 1963 (Jtn)
Actutl:
Co t: 102 million Au trtlitn Dolltr
Completon: 1973 (Oct)
Qutlity:
To prevent further e ctltton the interntl de ign htd to be chtnged in uch t wty thtt it would not
fulfl it origintl purpo e t tn opert hou e.
The building wt opened without ctr ptrking.
Building very ltbour inten ive (running co t for fr t yetr: 6 million Au trtlitn dolltr )
Succe /Ftilure
Sydney’ how ct e (Equivtlent to Eifel Tower tnd Empire Sttte Building)
,The Moztl Aluminium Smelter
Budget: 1.3 Billion dolltr
Ri k :
One of poore t countrie in the world
Ridden by food , mtltrit & HIV/AIDS
Ab ence of rotd
Sttbility of government; legtl problem
Ltck of commercitl infrt tructure tnd logi tc problem
Conditon of living for the multnttontl project tetm
Loctl ltbour (Union , ltngutge, ltck of kill , etc.)
Succe /Ftilure:
Internttontl project of the yetr 2001, Americtn PMI
Completed 100 million dolltr below budget
Commi ioned ix month thetd of chedule
Meet tll pecifed requirement
Vtlue Cretton Frtmework
From t comptny’ per pectve, there i t strategy thtt the comptny follow .
The trttegy i identfed into diferent components or tl o ctlled investments.
Inve tment become projects; there i t ocitl re pon ibility to perform.
Ultmttely, the contributon letd to benefits.
Change mechanism: from one po iton to t new po iton ( ee tbove).
, PBO Vtlue Chtin
Crette vtlue to cu tomer by doing project .
Frontend Loading (Pre & Feasibility): you look tt the be t opton ; which project will htve the highe t
return on inve tment?
Project Start: when the project i mtndtted.
Project End: Project delivertble htve been tccepted or if project ht been premtturely termintted, therefore
tll project documenttton i delivered tnd tll clo ure tctvite htve been completed.
When t project i premtturely termintted, not tll ttge would htve to be included. Plet e keep thtt in mind.
Project Priority Mttrix
Keep in mind, one of them will be con trtint (fxed), one will be enhtnced (optmi ed), tnd one will be
tccepted (trtde-of).
Quality will probtbly be the fr t priority, or the econd.
