Project Management

What is a Project

Product:

 Definition
 Characteristic
 Features & Figures
 Roles & Impact
 Development trend
 Feasibility (tính khả thi – Business Major)

Project: the set of controlled and coordinate activities, with start and finish
dates, undertaken to achieve an objective conforming to specific requirment,
including constrains of time, cost, quality, and res

A project has a scope

A project is a planned undertaking

A project has time, cost, quality and resource constraints: Competitive

points

Time-consuming competition:

 Human resources
 Technology

Cost competition:

 Inputs cost deduction

 No redundant activity

Quality competition: (worth every penny)

 Outputs
 Facility

A project manager is a person who causes things to happen

Therefore, project management is causing a planned undertaking to happen

Manager do the right things, Leader do the things right

Attributes of a good Projec Manager

 Proactive not Reactive

  Take ownership of the whole project
 Adequately plans the project
 Authoritative (not Authoritarian)
 Decisive
 Good communicator
 Manage by data and facts not uniformed optimism
 Leads by example
 Has sound Judgement
 Motivator
 Diplomatic
 Can Delegate

Stakeholder:

Typical Stakeholder:

 Sponsor
 Funding Body
 Customers
 Suppliers
 End Users
 Environmental Agency
 Maintainance Team
 Neighbours/Community/Shareholders
 Fusion Community
 Interface

Stakeholder Engagement process

 Identify Stakeholders:
 Assess needs
 Define actions
 Establish communication channels

Benefits & Expectation

Vật Chất, Tài Chính

9 Knowledge Area:

Scope Mgt, Time Mgt, Cost Mgt, Quality Mgt, Hr Mgt, Comm Mgt, Risk Mgt,
Procure Mgt
=> Project Management Frame work

Project Stakeholder

- The project sponsor and project team

- Support staff
- Customers
- Users
- Suppliers
- Opponents to the project

Project Management

Key competencies (nang luc cot loi)

4 core knowledge areas lead to specific project objectives (scope, time, cost,
quality)

4 facilitating knowledge areas are the means through which the project
objectives are achieved (hr, communication, risk, procurement management)

1 knowledge area (project integration management) affects and is affected

by all of the other knowledge areas

Project Management Tools and Techniques:

Project Charter, scope statement, and WBS (work breakdown structure)

(scope)

Gantt charts, network diagrams, critical path analysis, critical chain

scheduling (time)

Cost estimates and earned value management (cost)

See Table 1-1 on p11 and more

How project management relates to other disciplines

Project managers must also have knowledge and experience in

 - General management
- The application area of the project

Project:

- Giới hạn thời gian (time limitation)

- Sản phẩm cuối cùng (ending product)
- Project have to build with the team and project manager

Key points in Project set up and Definition

- Create Project Management Plan (PMP)

- Be clear of scope and objectives
- Establish clear statement of what is to be done (WBS)
- Establish Risks to be Managed
- Establish Cost and Duration
- Establish Resources Required

Project management Plan – PMP

Master Document for Project Defines the following:

- Project Objectives, Scope, Deliverables

- Stakeholders (Internal & External)
- Work to be done (WBS)
- Project Organisation and Resources (OBS)
- Project Costings (CBS)
- Project Schedule Procurement/Contract Strategy
- Risk Management
- Quality management
- Change Management

Major Characteristic of a Project

- Established objective
o Measurable: ROI, ROE
o Achievable
o Realistic
o Time
 - Life span
- Across-the-organizational participation
- Involves doing smt never been done before
- Specific time, cost, and performance requirements

Ability: Khả năng mang tính bản năng

Competency
Capacity: Sức chứa (cực hạn của mỗi người)
Capability: Năng lực vận dụng ability trong tình huống thời gian nhất định

The Project Manager

- Temporary, non-repetitive activities and frequently acts independently

of the formal organization
o Marshals resources
o Linked to the customer interface
o Provides direction, coordination, and integration to the project
team
o Responsible for performance and success of the project

What is strategy?
 The art of distributing and applying military means to fulfil the ends of policy (Hart, 1967)
(quan trọng MỆNH LỆNH)
 Strategy is fundamentally deciding how the organization will compete (Larson & Gray,
2014) (quan trọng CẠNH TRANH)
 Strategy is the creation of a unique and valuable position, involving a different set of
activities (Porter, 1996) (quan trọng VỊ TRÍ)

Projects and Strategy

Mistakes caused by not understanding the role of projects in accomplishing
strategy:
 Focusing on problems or solutions with low strategic priority.
 Focusing on the immediate(trực tiếp) customer rather than the whole market place and
value chain.
 Overemphasizing technology that results in projects that pursue exotic technology that
does not fit the strategy or customer need (đặt nặng công nghệ k cần thiết, k phù hợp vs
nhu cầu khách hàng)
 Trying to solve customer issues With a product or service rather than focusing on the
20% with 80% of the value (Pareto's Law). (
 Engaging in a never-ending search for perfection only the project team really cares
about. ( luôn đòi hỏi sự hoàn hảo ở mức độ cao)
6 mục khách hàng thường yêu cầu
 Tốc độ phục vụ
 Giá cả
 Chất lượng dịch vụ or sản phẩm
 Chính sách hậu mãi (sau khi mua )
 Người tư vấn bán hàng
  Những chính sách đặc biệt ưu đãi

The Strategic Management

 Strategic management is the process of assessing "what we are" and deciding and
implementing "what we intend to be and how we are going to get there."
4 cái biết
 Biết việc
 Biết điều
 Biết mình
 Biết người
Strategic Management

- Require every project to be linked to strategy

- Provides theme and focus on firm’s future direction
 Responding to the changes in the external envỉonment - environmental
scanning
 Allocating scarce resources of the firm to improve its competitive position-
internal responses to new programs
- Requires strong links among mission, goals, objectives, strategy, and implementation
(KPI, OKR,…)

Linkage between mission, goals, objectives, strategy

- Mission gives the general purpose of the organization (what we want to

become)
- Goals give global targets within the mission
- Objectives give specific targets to goals.
- Objectives give rise to formulation of strategies to reach objectives.
- Strategies require actions and tasks to be implemented.

Examples of mission statement

• Microsoft: Our mission is to empower every person and organization on the planet to achieve
more
• Boeing: Connect, Protect, Explore and Inspire the World through Aerospace Innovation
• FPT: FPT's mission is to make available the latest technology and information that makes it
possible for each person to reach their potential, contributing to address the socio-economic
Issues

Four Activities of the Strategic

Management Process
• Review and define the organizational mission.
• Set long-range goals and objectives.
• Analyze and formulate strategies to reach objectives.
• Implement strategies through projects

Project Portfolio Management: The need for a Strong Project Priority System
 - The Implementation Gap:
The lack of understanding and consensus on strategy among top management and middle-
level (functional) managers who independently implement the strategy
- Organization Politics:
Projectt selection is based on the persuasiveness and power of people advocating the projects
- Resources conflict and multitasking
Multiproject environment creates independency relationships of shared resources which
result in the starting, stopping, and restarting projects.

Financial Models
- The Payback model
o Measures the time the project will take to recover the project investment
o Uses more desirable shorter paybacks
o Emphasizes cash flows, a key factor in business
- Limitations of Payback
o Ignore the time value of money
o Assume cash inflows for the investment period (and not beyond)
o Does not consider profitability
- The Net present value (NPV) Model
o Uses management's minimum desired rate-of-return to compute the present value
of all net cash inflows.
o Positive NPV is eligible for further consideration. If the result is negative, the
project is rejected.
o Higher positive NPV's are desirable.

Nonfinancial Strategic Criteria

- To capture larger market share
o Innovate a new product (new feature,…)
o Educate customers
o Export
- To make it difficult for competitors to enter the market
- To develop an enabler product, which by its introduction will increase sales in more
profitable products
- To develop core technology that will be used in next-generation products
- To reduce dependency on unreliable suppliers
- To prevent government intervention and regulation
- To restore corporate image or enhance brand recognition
- To demonstrate its commitment to corporate citizenship and support for community
development

Applying a Selection Model

- Project Classification
o Deciding how well a strategic or operations project fits the organization's strategy.
- Selecting a Model
 o Applying a weighted scoring model to align projects closer with the organization's
strategic goals.
 Reduces the number of wasteful projects
 Helps identify proper goals for projects
 Helps everyone involved understand how and why a project is selected

Project Proposals
• Sources and Solicitation of Project Proposals
- Within the organization
- Request for proposal (RFP) from external sources (contractors and vendors)
• Ranking Proposals and Selection of Projects
- Prioritizing requires discipline, accountability, responsibility, constraints, reduced flexibility,
and loss of power.
• Managing the Portfolio
- Senior management input
- The priority team (project office) responsibilitiesa project is sel

Managing the Portfolio System

- Senior Management Input
o Provide guidance in selecting criteria that are aligned with the organization’s
strategic goals
o Decide how to balance available resources among current projects
- The Governance Team Responsibilities
o Publish the priority of the project
o Ensure that the project selection process is open and free of power politics
o Reasses the organization’s a goals and priorities
o Evaluate the progres of current projects

Balancing the Portfolio for Risks and Types of Projects

- Bread-and-butter Projects
o Involve evolutionary improvements to current products and services.
- Pearls
o Represent revolutionary commercial opportunities using proven technical
advances.
- Oysters
o Involve technological breakthroughs with high commercial payoffs.
- White Elephants
o Showed promise at one time but are no longer viable

Key Terms
- Implementation gap
- NPV
- Organizational politics
- Payback
- Priority system
- Priority team
 - Priority portfolio
- Project screening matrix
- Project sponsor
- Sacred cow
- Strategic management access

Defining the Projec

Step 1: Defining the Project Scope
- Base on what you define your project
o Money
o Number of Staff involve
o Dự báo tác động của nó (Impact)
Step 2: Establish Project prioriries
- Causes of Project Trade-offs
Because we limit resources
- Shifts in the relative importance of criterion related to cost, time, and performance
parameters
o Budget cost
o Schedule time
o Performance-Scope
- Managing the Priorities of project Trade-offs
o Constrain: a parameter is a fixed requirement
o Enhance: optimizing a criterion over others
o Accept: Reducing (or not meeting) a criterion requirement
Step 3: Creating the Work Breakdown Structure
Step 4: Integrating the WBS with the Organization
Step 5: Coding the WBS for the Information System

Scope Statements
Also called statements of work (SOW)
• Project Charter
- Can contain an expanded version of scope statement
- A document authorizing the project manager to initiate and lead the project.
• Scope Creep
- The tendency for the project scope to expand over time due to changing requirements,
specifications, and priorities.
Types of cost
- Direct Costs
o Costs that clearly chargeable to a specific work package.
 Labor, materials, equipment, and other
- Direct (project) overhead costs.
o Cost incurred that are directly tied to an identifiable project deliverable or work
package
 Salary, rent, supplies, specialized machinery
- General and Administrative overhead costs
o Organization costs indirectly linked to a specific package that are apportioned to
the project.
Chi phí sử dụng tài nguyên, hình ảnh, uy tín,…
Khả năng tập hợp
Finding talent
Refining Estimates
- Reasons for adjusting estimate
o Interaction costs are hidden in estimates
o Normal conditions do not apply
o Things go wrong on projects
o Changes in project scope and plans.
- Adjusting estimates
o Time and cost estimates of specific activities are adjusted as the risks, resources,
and situation particulars become more clearly defined

Objectives
Mission
Challenges
Resources
Money
Cost/Duration

VUCA:
- Vulnerable
- Uncertainty
- Complexity
- Ambigous

Managing versus Leading a Project

- Managing – coping with complexity
o Formulate plans and objectives
o Monitor result
 o Expedite activities
o Solve technical problems
o Make tradeoffs among time, cost, and project scope
- Leading – coping with change
o Recognize the need to change to keep the project on track
o Initiate change
o Provide direction and motivation
o Innovate and adapt as necessary
o Integrate assigned resources
11. TEAMS - Foundation of a team:
High-Performing teams
- Synergy:
o 1 + 1 + 1 = 10 (positive synergy)
o 1 + 1 + 1 = 2 (negative synergy)
- Characteristics of High-performing teams
1. Share a sense of common purpose
2. Make effective use of individual talents and expertise
3. Have balanced and shared roles
4. Maintain a problem solving focus
5. Accept differences of opinion and expression
6. Encourage risk taking and creativity
7. Set high personal performance standards
8. Identify with the team

Condition favoring development of high-performance project teams

- Ten or fewer team member
- Voluntary team membership
- Continuous service on the team
- Full-time assignment to the team
- An organization culture of cooperation and trust
- Members report solely to the PM
- All relevent functional areas are represented on the team
- The project involves a compelling objective
- Members are in close communication with each other

 Biểu hiện điều kiện của một đội mạnh

Building High-performance Project teams

- Recruiting Project Member
o Factors affecting recruiting
 Importance of the project
 Management structure used to complete the project
o How to recruit?
 Ask for volunteers
o Who to recruit?
 Problem-solving ability
 Availability
 Technological expertise
 Credibility
 Political connections
 Ambition, initiative, and energy
 Lesser familitarity011
12. Oursourcing

Project Partnering
- Partnering: The process of transforming contractual arrangements into a conhesive,
collaborative team that deals with issues and problems encountered to meet a customer’s
needs.
o Assumes that the traditional adversarial relationship between the owner and
contractor is ineffective and self-defeating
o Assumes that both parties share common goals and mutually benefit from the
successful completion of projects
- Factors favoring partnering
o Existence of common goals
o High costs of the adversarial approach
o Shared benefits of the collaborative approach

Outsourcing Project work

- Advantage:
o Cost reduction
o Faster project completion
o High level of expertise
o Flexibility
- Disadvantage
o Coordiantion breakdowns
o Loss of control
o Interpersonal conflict
o Security issues
o Political hot potatoư

Strategies for communicating with outsourcers

- Strategy 1: Recognize cultural difference
- Strategy 2: Choose the right words
- Strategy 3: Confirm your requirements
- Strategy 4: Set deadlines

1 2 3 4
Problems Factors Alternatives Implementation
Issues Reasons Options Control system
Symptoms Rationale Scenarios Quality management
Phenomenon Necessity Menu

(Có thể outsource từ step 2)

Prepare activities – selling the stage for successful partnering
- Selecting a Partners
o Voluntary, experienced, willing with committed top management