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Topics: Project management, Project, Management Pages: 5 (867 words) Published: February 23, 2014
02/04/2013
Lecture 6: Project Management – Day 1

Word of the day: Stakeholder

Announcements:
Please submit your assignment appropriately into the three designated areas for the memo, spreadsheet and organization chart.  
What is Project Management?

Running a project from planning through completion
May also involve ideation, idea selection, the feasibility analysis, writing a proposal, managing the proposal approval process, and other pre-planning aspects Project Management is important to know because you will manage projects at some point in life.

What is a Project?

A project is a temporary endeavor undertaken to achieve a particular goal. Must have a unique purpose
Must have a fixed lifespan. A project has a beginning and an end. Requires resources, often from various areas
Should have a primary sponsor
Involves uncertainty. Projects can be risky at times and can fail. Typically in the real world, someone is assigned as the project manager and someone as the project sponsor. The project manager gets some resources, particularly people to work with to bring the project to fruition. E.g., upgrading financial systems, migrating from one CRM system to another, etc.

Projects are bound by the Triple Constraints:

a) Time: When do we have to be done? (e.g. person month, person hours) b) Resources: How much money do we have? (e.g. money, materials, and everything that given for this project) c) Scope: What do we need to accomplish?

Note: If you decrease time, you will have to increase resources or decrease scope. If you define your scope well, you should be able to manage your project. It’s best for extra capacity to be taken into consideration if the uncertainty id 5% or 10%.

The triple constraints now commonly add quality:

Stages before Project Launch:

Ideation - Brainstorming
Idea narrowing – Using ranking tables
Best idea comparison
Idea analysis/project selection – Narrow down your project ideas and analyze them. Check for capability, viability and if they are ethical or not. Project analysis/justification
Project proposal creation
Project proposal approval
 
Note: Include a do-nothing alternative since it may be best to wait in some cases.

Stages before Project Launch:

Launch
Baseline plan
Execution
Control
Conclusion
completion

Note: You want the bad projects to die FAST. Because the longer you wait, the more money you will lose. Keep in mind sunk costs. You never look at the sunk cost if you want to move forward.

Stages of Project Management:

Launch
Baseline plan
Execution
Control
Conclusion
completion

Note: You want the bad projects to die FAST. Because the longer you wait, the more money you will lose. Keep in mind sunk costs. You never look at the sunk cost if you want to move forward.

Project Management Justification:

Feasibility Analysis
Technical: does the capability exist?
Economic: can we afford it?
Use TCO to evaluate
Discounted ROI
Hurdle rate from corporate finance or accounting
Ensure we meet controller standards
DO NOT go too far into the future (cone of uncertainty)
Operational: do we have the ability to do it?
Political: will the key stakeholders give it the support necessary to succeed? Legal: is it?
Ethical: does the project reflect our ethical and moral principles? This need to be look at separately from other categories
Something is legal does not mean it is ethical
e.g. Insurance companies
Strategic alignment
Direct correlation between the project and corporate strategy Projects must be aligned with what a company is attempting to accomplish. For e.g., if your company is Walmart and it is trying to offer low prices, your project should have a correlated goal. Risk:

How certain are the numbers?
What is the payback period?
Payback is only used to measure the risk. Never use payback to justify projects. If the payback period is too long, the project will probably be killed due to the high risk...
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