Successful Project Management Brain Storming What will be

Successful Project Management Brain Storming • What will be the constraint of a project? • Think of the possible problems that may occurs • How to start a successful project • In your opinion, what is a proposal? • What is a good proposal? 2001年編寫(引用沈肇基老師講義) 朝陽科技大學 1

The triple constraint Defining The Goals of A Project How to start Successful project 2001年編寫(引用沈肇基老師講義) Negotiations and contracts 朝陽科技大學 2

The Triple Constraint Successful project management means accomplishing the performance specifications on or before the time limit and within the budgeted cost. Performance Specification Time le du e h Sc Cost Budget 2001年編寫(引用沈肇基老師講義) 朝陽科技大學 3

The Triple Constraint-- Performance problems §Poor communication between the contractor and customer. §Ambiguous communication between the contractor (boss) and the customer (project team) may lead to a quality disappointment. §Technical difficulty from optimistic assumptions. too §Poor design or make mistakes in executing contract performance. CLARIFY UNCLEAR SPECIFICATIONS 2001年編寫(引用沈肇基老師講義) 朝陽科技大學 4

The Triple Constraint --Time problems §“Better” is the enemy of “good enough”. §Resources are not available when required. §Those assigned to it are not interested in their tasks. §Performance specification is raised. Triple constraint Outcome $ better Overrun Budget Underrun worse Early 2001年編寫(引用沈肇基老師講義) Performance specification Schedule Late 朝陽科技大學 Time 5

The Triple Constraint Cost problems §Schedule delay or sleep. §Resources are not being used as efficiently as plan. §“Liars Contest” during contract negotiation which causes a cost overrun. §Initial cost estimates are simply too optimistic. §Inadequate cost consciousness. (沒有成本概 念). §Funding may not occur according to plan. TIME IS MONEY!!! 2001年編寫(引用沈肇基老師講義) 朝陽科技大學 6

How to Start Successful Projects Propo sal define complete plan/replan lead monitor (metrics) • Proposals bridge the defining and planning activities on projects. • A good proposal includes a thorough plan for work performance that embodies the triple constraint. 2001年編寫(引用沈肇基老師講義) 朝陽科技大學 7

STRATEGIC ISSUES Propo DEFINING PROJECT sal PLANNING ACTIVITIES The basis of a successful strategy is to filter out losing projects THE PROPOSAL PROCESS 2001年編寫(引用沈肇基老師講義) 朝陽科技大學 8

Proposal effort STRATEGIC ISSUES requirement Project value Company long-tem goals Current and near-term resources Response ability Strategic Framework filterin g Winning the completion Bid / No Bid Decision 2001年編寫(引用沈肇基老師講義) 朝陽科技大學 9

STRATEGIC CONCERNS < The basis of a successful strategy is to filter out losing projects. ð Reject consumer project efforts in an industrial product company. ð Reject a fixed price contract for a technical development, scientific advance, invention, or something not previously accomplished. < In summary, avoid projects that are inconsistent with your organization’s long-term goals or current and near-term resources, such that ð Unlikely to win the proposal competition. ð Unlikely to satisfy the intended triple constraint. ð Insignificant or irrelevant. 2001年編寫(引用沈肇基老師講義) 朝陽科技大學 10

Project Value The Requirement ðWhethere is a real requirement. ðWhether the funds are really available. ð Market request. ð Apply important new technology. ð Enhance the organization’s reputation. ð Commercial new product. ðAccept future financial commitments for new capital or facility investments. BID/NO BID DECISISONS Response Ability Winning the Competition ðFirst to prepare a winning proposal and second to perform the proposed work. If some capabilities are not actually present. There must be a viable plan to make them available when they are needed. ðIs there advance information about the project available to it? ðConcern the customer. Is it an individual or a commercial organization? (internal or external) 2001年編寫(引用沈肇基老師講義) 朝陽科技大學 11

Proposal Process 1. Authorization 2. Theme Fixation 3. SOW 4. Plan 5. Adjustments 6. Approval 7. Submission 8. Post-submission 2001年編寫(引用沈肇基老師講義) 朝陽科技大學 12

THE PROPOSAL PROCESS 1. Authorization. authorization Theme fixation SOW 2. Selection theme. of a dominant 3. Preparation of the statement of work. approval 4. Development a plan to satisfy the triple constraint. 5. Adjustment to inconsistencies inadequacies. remove and 6. Approval. plan adjustments submission Post-submission 7. Submission. 8. Postsubmission follow-up, including presentations and contract negotiations. 2001年編寫(引用沈肇基老師講義) 朝陽科技大學 13

The Details of Proposal Process 1. Authorization 2. Theme Fixation • Authorization form: estimated schedule, funding, customer, estimated bid price, competition, proposal plan, approvals • This proposal process frequently Starts before an RFP. (preproposal) • A proposal itself can be considered a project with a triple constraint. Customer’s Contractor’s 3. SOW goals • Content It should identify measurable tangible, and verifiable acceptance criteria. • Clarification: After it is drafted, the SOW should be reviewed with the customer prior to further work on the proposal. No too much “gold plating”. 5. Adjustments • Someone discovers that two departments contributing to the proposal have duplicated their efforts or have made differing assumptions about some significant item. • Someone discovers new information or corrects some oversight. • Understand the subtle different minds of customers and either harmonize them of deduce who has the most influence. • Working with the customer (when this is permitted). • If everyone in your organization understands what theme is, your proposal should be acceptable to your prospective customer. 4. Plan • The act of writing the proposal forces the organization to think through and attempt to simulate the entire project. • Simulation: To identify any potential problem areas in the prospective system before building it. • The triple Constraint: 1. Use Work Breakdown Structure (WBS) to describe your approach to the performance dimension. 2. Use schedule chart, in which each activity corresponds to a WBS element, to describe your approach to the time dimension. 3. Use a complete cost breakdown for each activity to describe your approach to the money dimension. • Checklists (ref: pp. 287 -289) HOMEWORK!! Prepare your own list for your project. 6. Approval Form: >schedule for job >title >customer >Total bid price >cost >fee >summary SOW >submitted package >summary of risk >key people promised > financial 7. Submission • Watch your data commitment requited >warranty • Check requested format in RFP. 2001年編寫(引用沈肇基老師講義) 朝陽科技大學 8. Post-submission Presentation and Negotiation 14

Proposal Content Propo sal EXECUTIVE SUMMARY MAIN PROPOSAL • TECHNICAL • MANAGEMENT APPENDICES 2001年編寫(引用沈肇基老師講義) 朝陽科技大學 15

CPIF→Cost Plus Incentive Fee : Contractual Form FFP→Firm Fixed Price: The price and fee are determined and do not depend on cost. FP→Fixed Price: Same as FFP. CPFF→Cost Plus Fixed Fee: The customer agrees to reimburse the contractor’s actual costs, regardless of amount, and pay a negotiated fixed fee independent of the actual costs. Similar to CPFF except the fee is not preset or fixed but rather depends on some specified incentive. T and M>>Time and Material : The customer agrees to pay the contractor for all time and material used on the project, including a fee as a percentage of all project costs. Customer Financial Risk Contractor Fixed price Cost reimbursable NEGOTIATIONS AND CONTRACTS Contract Negotiation Customer Organization Management Contracting or Purchasing Project Manager Support Team 2001年編寫(引用沈肇基老師講義) Contract Project Team Contractor Organization Management Contracts Manager or Project Marketing Manager Project Team 朝陽科技大學 Support Team 16

Legal Aspects: Contract Items-1 2 Customer’s name and address and specification of authorized signatures. 2 Contractor’s name and address and specification of authorized signatures. 2 Statement of supplies (items), services, and prices (i. e. , SOW). 2 Preservation, packaging, and packing instructions. 2 Delivery or performance period. 2 Inspection and acceptance terms. 2001年編寫(引用沈肇基老師講義) 朝陽科技大學 17

Legal Aspects: Contract Items-2 2 Contract administration data. 2 Special provisions (funding limitations or customer furnished equipment). 2 General provisions (reference to federal procurement regulations, overtime payment terms, or similar) such that, for example manufacturers have been obligated to pay criminal and civil penalties for violations of federal regulations. 2 Patent terms, conditions, and ownership rights (if not covered in items 8 and 9). 2 List of required documentation. 2001年編寫(引用沈肇基老師講義) 朝陽科技大學 18