Project Scope Time and Cost Management MGT 8025

Project Scope, Time and Cost Management - MGT 8025 Eng. Ranil Sugathadasa BSc. Eng(Hons), MSc. Eng(Moratuwa), MIE(SL), MILT(UK), CEng, MBA(Colombo), PMP (USA) Management Consultant, Motivational Trainer, Executive Coach, Chartered Engineer Senior Lecturer, Faculty of Engineering, University of Moratuwa Founder: The. Motivator www. themotivator. lk Phone: 0777 224038 Email: ranil. sugathadasa@themotivator. lk 1

Why You Should Listen to Me n n Over 12 years experience into Project Management n Construction PM- TOA Japan in Singapore n New Product Development PM- Holcim n Market Development PM- Holcim n CRM PM- Holcim n CSR PM- Holcim n Health and Safety PM-Holcim n Mini Hydro Power PM-Eagle Hydro Power n Real Estate PM- Next Homes n Hambantota Entire Road planning PM- National Level n Kandy City Development project- National Level Project Management Trainer and MBA Lecturer for more than 8 years in Sri Lanka , Dubai, Doha and Oman 2

Why Learn ‘Project Management ? n n PM is result oriented. It takes problem avoiding and proactive approach with detailed planning, monitoring and controlling until the set goals are achieved. PM helps organizations to implement their strategies with low cost, at a reduced time, at a high quality with a high success rate. PM has become very popular during last 2 decades, and used by many organizations in turning their vision to reality PM helps to break down large portfolios into manageable projects 3

What is a Project ? n n A project is a temporary endeavor undertaken to create a unique product, service or result. Project Characteristics n Temporary- Every project has a definite beginning and definite end n Unique products, services, or results n Progressive Elaboration 4

Projects vs. Operational Work n n n Operations are on going and repetitive, while projects are temporary and unique. The purpose of a project is to attain its objective and then terminate. Conversely, the objective of an ongoing operation is to sustain the business. Project concludes when its specific objectives have been attained, while operations adopt a new set of objectives and work continues. 5

Examples of Projects n n n n Developing a new product or service Designing a new transportation vehicle Constructing a building Building a water system for a community Running a campaign for a political office Implementing a new business procedure or process Developing or acquiring a new or modified information system 6

Projects and Strategic Planning n n n Projects are a means of organizing activities that can not be addressed within the organization's normal operational limits. Projects are therefore, often utilized as a means of achieving an organization’s strategic plan, whether the project team is employed by the organization or is a contracted service provider. Strategic considerations n Market Demand ( e. g. a cement company authorizes a project to build new cement silos for cement storage in North & East) n An organizational need ( e. g. A training company authorizes a project to create a new course to increase its revenue 7

Projects and Strategic Planning (Contd’) n Strategic considerations n Market Demand ( e. g. a cement company authorizes a project to build new cement silos for cement storage in North & East) n An organizational need ( e. g. A training company authorizes a project to create a new course to increase its revenue n A customer request ( e. g. CEB authorizes a project to build new substation to serve a new industrial park) n A technological advance (e. g. A logistics company authorizes an e commerce application project) n A legal requirement (e. g. A paint manufacturer authorizes a project to establish guidelines for the handling of toxic materials) 8

What is Project Based Management n n New methodology that can be applied to the process of general management. Reasonable amount of management actions can be constructed along the project model. 9

What is Project Management n n n Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements. Project management is accomplished through the application and integration of the project management process of initiating, planning, executing, monitoring and controlling and closing. Project manager is the person responsible for accomplishing the project objectives. 10

What is Project Management n Managing projects includes n Identifying requirements n Establishing clear and achievable objectives n Balancing the competing demands for quality, scope, time and cost n Adapting the specifications, plans, and approach to the different concerns and expectations of the various stakeholders 11

Project Management knowledge Areas ( as per PMI) n n n n n Project Project Project Integration Management Scope Management Time Management Cost Management Quality Management Human Resource Management Communication Management Risk Management Procurement Management 12

What is Program Management n n n A programme is group of related projects managed in a coordinated way to obtain benefits not available from managing them individually. ( Unrelated projects: portfolio management) A programme is an ongoing concern with new projects joining and existing once finishing. A programme may be of fixed duration or may continue for an indefinite period of time. It looks after managing dependencies between projects which can be strategic, technological, resource or budget 13

Project Manager’s Role n n n Project Manager (PM) initiate the project (preferably), plans it and implements it, monitors and report the progress until all deliverables are made according to the agreed plans. Responsible for managing stakeholders, and meeting various stakeholder expectations. Responsible for the communication of project issues, and to keep an open and honest communications with all the parties involved 14

Power Dimensions of the Project Manager According to Dr. Kerzner, “Project Managers are generally known for having a lot of delegated authority but very little formal power. They must, therefore, get jobs done through the use of interpersonal influences. ” 15

Team Leadership r be Team Leadership t ec § § oj § § Pr § M em § § am § Team barriers Project team selection Team structure Team building sessions Team commitment Trust and respect Te § § § Project objectives Planning Scope management Project staffing Problem avoidance Organization Management commitment (for providing resources) § Senior management support (to ensure visibility) § Organizational environment § Organizational development specialists § 16

What is Project Scope Management ? § Project Scope Management includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. 17

Scope Management Process § § § Scope Planning- Creating a project scope management plan that documents how the project scope will be defined, verified, controlled, and how the work breakdown structure (WBS) will be created and defined. Scope Definition- Developing a detailed project scope statement as the basis for future project decisions Create WBS-Subdividing the major project deliverables and project work into smaller, more manageable components Scope Verification-Formalizing acceptance of the completed project deliverables Scope Control-Controlling changes to the project scope 18

Scope Planning § § Process to prepare detailed project scope statement based upon the preliminary project scope statement A process that enables the creation of the WBS from the detailed project scope statement 19

Scope Definition § Project Scope Statement § § § Project Objectives Product scope description Project reequireme Requested Changes Project Scope Management Plan 20