Project Management - PowerPoint Presentation

PROJECT MANAGEMEN T Presentation by Olivia Wilson Introduction to Project Management : Concept and Definition of Project, Characteristics of Project, Concept and definition of Project Management, Functions of Project Management, Importance of Project Management, Who is a Project Manager, Rol...

PROJECT MANAGEMEN T Presentation by Olivia Wilson Introduction to Project Management : Concept and Definition of Project, Characteristics of Project, Concept and definition of Project Management, Functions of Project Management, Importance of Project Management, Who is a Project Manager, Roles & Responsibilities of Project Manager. Understanding the Phases in the Lifecycle of Projects and their Significance, Different types of Projects: Industrial, Telecommunication, Research and more, Project Selection Methods : Agile method , Waterfall, Methods, Scrum Model & Kanban Model Introduction to Projects What is a project? Importance of projects in achieving goals. Distinction between projects and operations. "A temporary effort undertaken to deliver a unique product, service, or result, often involving defined objectives, deliverables, timelines, and resources." Importance of projects in achieving goals Focused Effort Innovation and Creativity Efficient Use of Resources Clear Accountability Adaptability to Change Measurable Success Alignment with Organizational Strategy Improved Collaboration Risk Management Long-term Value Creation  Distinction Between Project and Operations Aspect Project Operations Ongoing and repetitive activities to sustain the organization’s Definition A temporary endeavor to create a unique product, service, or result. functionality. Duration Temporary, with a defined start and end date. Continuous, with no defined end. Objective Achieves a specific, unique goal or deliverable. Maintains and optimizes existing processes. Output Produces a unique deliverable (product, service, or result). Produces repetitive outputs or services. Change Focus Drives change, innovation, or improvement. Focuses on maintaining stability and efficiency. Scope Dynamic and evolves throughout the project lifecycle. Fixed and defined by the ongoing nature of operations. Risk Level Higher risk due to innovation and uncertainty. Lower risk due to routine and established processes. Resources Temporary allocation of resources, often project-specific. Permanent allocation of resources for operational needs. Example Activities - Building a new office. \n - Developing a new product. - Manufacturing products. \n - Providing customer support. Operations management principles: optimizing efficiency and Management Approach Project management principles: planning, executing, and closing. consistency.  Characteristics of a Project: Temporary Unique Goal-oriented Constraints Cross-functional State Examples of Projects Concept and Definition of Project Management a structured discipline that involves planning, organizing, controlling resources, tasks and timelines to achieve specific project goals encompasses applying tools, techniques, and methodologies concept revolves around balancing the project constraints— scope, time, cost, quality, resources, and risks Ensures the project's objectives are achieved efficiently and aligned with the strategic goals Project Management is defined as: "The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements." (Source: Project Management Institute, PMI) Key aspects of this definition: Knowledge Skills Tools and Techniques Project Activities Requirements  Definition of a Project Manager "A Project Manager is an individual accountable for planning, executing, monitoring, controlling, and closing a project, ensuring that the objectives are met while managing resources and stakeholder expectations." Phases in Project Lifecycle Types of Projects Project Selection Methods  Cost Benefit Analysis Cost-benefit analysis (CBA) is a data-driven method compares the costs and benefits of a project or decision to determine its overall value and feasibility The goal is to calculate the net cost or benefit of the project. The result of a CBA is often a Benefit-Cost Ratio (BCR). A project is considered cost-effective when the BCR is 1.0 or greater. PV = FV / (1+r)n PV = Present Value FV = Future Value r = Discount Rate n = Number of periods A CBA ratio greater than 1.0 indicates that the project's expected benefits outweigh its costs, and the project is financially feasible.  Payback Period Part of capital budgeting the time required to recoup the funds expended in an investment, or to reach the break-even point. Payback Period = Initial Investment / Cash Flow per Year The payback period is a metric that shows how long it takes for a project to break even. A shorter payback period is generally better because it means the investment returns its value faster, which can reduce risk and improve cash flow.  Add a subheading is a tool that helps you evaluate the value of a project by assigning a numeric value to it based on specific criteria. The goal is to use the model to rank and prioritize projects Select criteria: Choose the most important factors for your organization. For example, cost, risk, duration, or potential financial returns. Assign weights: Weigh each factor according to its importance and priorities. Score options: Assign a numerical value to each option based on the criteria and weights. Calculate total score: Add the weighted values for each option to calculate a total score. Choose the highest score: The project with the highest score is the one to choose. Overall Score = Summation of (Each Criterion's Numeric Value × Its Weighting Value) https://courses.worldcampus.psu.edu/welcome/mangt510/less 02_33.html  Net Present Value NPV Net present value (NPV) is a metric used in project management to determine if a p will be profitable: NPV is the difference between the present value of cash inflows and outflows over period. It's a way to measure how much money a project will gain or lose Used to decide if a project's anticipated financial gains will outweigh the current investment. A positive NPV means the project is likely to be profitable, A negative NPV means it might not be financially viable. NPV = Cash flow / (1 + i)^t – initial investment NPV = Today's value of the expected cash flows − Today's value of invested cash In the formula, i is the discount rate, and t is the number of time periods  Constrained Optimization Method These methods are mathematical models of project selection which are used for larger projects that require complex and comprehensive calculations and simulations to study the feasibility of projects by understanding the uncertainties involved clearly. Some of the important constrained optimization methods include the following: Linear programming Non-linear programming Integer programming Dynamic programming Multiple objective programming  Discounted Cash Flow (DCF) is a financial analysis method that estimates the value of an investment by discounting the future cash flows to the present value. It's a popular capital budgeting methodology that's used in many industries, including investment finance, real estate development, and corporate financial management. DCF is used to assess the value of a project, company, or asset by considering the time value of money, risk, and a selected discount rate.  Opportunity Cost is the value of the benefits that are not chosen when one project is selected over another. It's a key concept in project selection that helps to evaluate the relative advantages and disadvantages of different options. Opportunity cost = Return on best foregone option - Return on chosen option  Internal Rate on Return (IRR) is a capital budgeting calculation that helps businesses decide which projects to invest in and rank them. It's a discount rate that produces a net present value (NPV) of zero for a project's cash flows. it's the expected compound annual rate of return for a project Types of Project Management Techniques Traditional Project Management (Waterfall) A linear, sequential approach each phase completed before the next on Best for well-defined requirements and outcomes, such as construction or manufacturing. Phases: Initiation Planning Execution Monitoring & Controlling Closing Advantages: Easy to manage due to its clear structure and well-defined processes. Disadvantages: Inflexible to changes and not ideal for projects with evolving requirements. Agile Project Management A flexible, iterative approach projects are broken down into small, manageable units (sprints), work is done incrementally Best for evolving requirements, such as software development or product design. Core Principles: Collaboration over contract negotiation Working software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan Advantages: Adaptable, encourages collaboration, and can quickly respond to changes. Disadvantages: Requires close communication and may lead to scope creep if not managed properly. Scrum A subset of Agile, Scrum is a framework that structures work in short, fixed-length cycles called sprintsusually lasting 2-4 weeks. Best for Software development, product management, and projects needing regular feedback. Key Roles: Product Owner Scrum Master Development Team Advantages: Increases productivity through structured work cycles and regular evaluations. Disadvantages: Requires team members to be well-trained in Scrum, and may not be suitable for all types of projects. Lean Project Management Focuses on maximizing value by eliminating waste and optimizing processes. Best for efficiency and resource management are critical, such as manufacturing and logistics. Key Principles: Value stream mapping Continuous improvement (Kaizen) Reducing waste in time, materials, and processes Advantages: Improves process efficiency and reduces costs. Disadvantages: May require a cultural shift in the organization and significant training. Kanban A visual workflow management method for managing and improving work across teams. Best for projects requiring visual tracking of progress and ongoing work, such as IT support or marketing campaigns. Core Principles: Visualize work on boards Limit work in progress (WIP) Focus on continuous delivery Advantages: Provides clear visibility of project status and helps with managing work in progress. Disadvantages: Can be less structured than Scrum, making it harder to track project scope Critical Path Method (CPM) Focuses on identifying the longest sequence of dependent tasks and managing those to ensure timely project completion Best for Projects with tight deadlines and a clear sequence of tasks, such as construction or engineering projects. Key Concepts: Critical path: the longest path of tasks that must be completed on time. Float: the amount of time tasks can be delayed without affecting the project. Advantages: Helps identify critical tasks and manage project timelines effectively. Disadvantages: Complex for larger projects, and it doesn’t adapt well to changes in scope or requirements. Critical Chain Project Management (CCPM) Focuses on managing project constraints, including resource availability, by using buffer management and optimizing the project's schedule. Best for Projects requiring resource optimization and fast delivery, such as research and development or complex engineering projects. Key Concept: Buffers: Time added to tasks to absorb uncertainties in project execution. Advantages: Focuses on resource management and ensures that critical tasks are prioritized. Disadvantages: May be difficult to implement and manage, especially for projects with constantly shifting variables. Six Sigma A data-driven methodology aimed at improving processes by identifying and removing causes of defects and variability Best for Projects focused on process improvement and defect reduction, such as manufacturing or service industries. Key Concept: DMAIC: Define, Measure, Analyze, Improve, Control Advantages: Improves process efficiency and quality control. Disadvantages: Can be complex and resource-intensive to implement across large projects. Hybrid Project Management A combination of different project management approaches to suit the specific needs of the project, such as blending Agile with Waterfall. Best for Complex projects with varying needs or when the project requires flexibility but also needs a structured framework. Advantages: Flexible and adaptable, combining the strengths of multiple methodologies. Disadvantages: Can be challenging to manage and requires a deep understanding of different methods. Adaptive Project Management (APM) Emphasizes adaptability and flexibility, with iterative feedback loops and rapid adjustments to the project approach as it progresses. Best for Projects in highly uncertain environments or those where the scope is continuously evolving. Advantages: Can respond quickly to changing environments and customer feedback. Disadvantages: Requires a high level of project team expertise and may not be suitable for projects with fixed deliverables. Content Beyond Syllabus for Self-experiential Study JIRA tool for Project Management Study branch specific tools used for Project Management Thank You Dr Jayashri Lohar Mail Id : [email protected]