Project Management: the Basics Why the projects are so popular today? What kinds of projects do we know? What are the main phases of the project? How can we manage a project?

First it was a project… New product New process New event ………………………………………… And now we need it more and more

Hierarchy (linear structure)

Functional/product/customer

Matrix structure

Do we really need a definition? A temporary endeavor undertaken to create a unique product, service, or result …………………………….. What is your definition?

Some specific features Change Goal Limited time Limited budget Limited resources Uniqueness Legal foundation Management

What kinds of projects do we know? We can distinguish projects by: Field Complexity (mono-, multi-, mega-) Scale Duration

Investment (commercial) project The goal, duration, dead line and budget are defined in advance; All effects of the project can be estimated; Resources are delivered step by step depending on the progress of the project.

Organizational project The goal is defined in advance, but duration can be defined only approximately; Most of effects are difficult to estimate; All resources are delivered as far as possible; All spending are taking into account, but can not be fully estimated before the implementation Reorganization of the firm, Implementation of the new system of management, holding a conference

Social project The goals can be declare in advance, but should be corrected step by step. It is very hard to estimate it in terms of quantity; The duration depends on stochastic factors and should be corrected; Spending are usually limited by the sources. Elimination of consequences of natural and man-made disasters, social upheaval

R&D and Innovation projects The main goal of the project is strictly defined, but sub-goals should be corrected step by step; The dead line and duration are defined in advance, but also can be corrected depending the progress of the project; Spending are restricted by the source of finance; The progress is restricted by the equipment and human capital. Any difference?

Project Roles and Responsibilities Project Manager Project Team Members Executive Sponsor Project Sponsor and/or Project Director Steering Committee Customers Stakeholders Vendors

Goal and objectives Goal - is the desired result of the project achieved within a certain time period Objective – the desired result of activities planned for the attainable (specified) time interval and is characterized by a set of quantitative data or parameters From the goal to the measurable objectives … Decomposition of the project - the definition of the modular structure of project planning and control

Risk Management Plan Risk is an event or occurrence that may negatively impact the project. Risk Identification (name, field) Risks Quantification (probability, impact) Risk Response (what are we going to do) Risk Monitoring and Control

Risks of the project: Technical the probability of negative results of R & D involved in the project, failure to reach the planned technical or quality parameters in the design and technological development advancing the technical level of production and technological capabilities to master the results of development

Risks of the project: Contract unreliability of subcontractors and suppliers, including the suppliers of security-critical resources (energy, components, raw materials, finance, etc.) investment risk - the probability of delays or failure of investors to finance.

Risks of the project: Commercial The probability of wrong choice of economic objectives of the project an incorrect assessment of required financial resources incorrect assessment of markets unexpected costs and project overruns

Risks of the project: Market The probability of blockage of the market advancing the project by competitor unexpected competition

Risks of the project: Distributional The probability of failure in the distribution channels theft or damage to goods disruptions in the flow of payments from customers

Project analyses: case study Read the business case in groups and discuss the following questions: What is the type of the project? What are the roles and responsibilities in the project; What are the main goal and measurable objectives of the project; What kind of risks can you see in the project and what will you do to minimize them? Please, prepare a short presentation of results