1IME 6140 Dr. Larry MallakIME 6140 Project Management Dr. Larry A. MallakWestern Michigan UniversitySpring 2006IME 6140 Dr. Larry MallakProject Management Has Never Been More Crucial.Technology, terror, teams, flexibility, contract labor, responsiveness, complexity, etc.IME 6140 Dr. Larry MallakHere Lies a WMU Grad1978-??He always met budget.What Will Be Your Epitaph?IME 6140 Dr. Larry MallakHere Lies a WMU Grad1970-??Her projects wereon time.What Will Be Your Epitaph?IME 6140 Dr. Larry MallakHere Lies a WMU Grad1981-??His projects saved thousands of lives.What Will Be Your Epitaph?IME 6140 Dr. Larry MallakYou = Your ProjectsMy Projects2IME 6140 Dr. Larry MallakMission OverviewLead projects where no one has led them before.IME 6140 Dr. Larry MallakProjects are Everywhere…IME 6140 Dr. Larry MallakIt’s Not Only Rock ‘N Roll.IME 6140 Dr. Larry MallakGround Zero was a Project That Started as a Perplexity.Credit: 2001 The Record (Bergen County, NJ),IME 6140 Dr. Larry MallakParkview Campus Needed to Satisfy Many “Critics.”IME 6140 Dr. Larry MallakCritics Turn the Triangle Into a Pyramid.CriticsCostPerformance Schedule3IME 6140 Dr. Larry MallakFieldstone Grille Missed Its November ’03 Opening.Slated for a January 2004 openingIME 6140 Dr. Larry Mallak2004 Olympiad in AthensIME 6140 Dr. Larry MallakA Project on the Critical PathIME 6140 Dr. Larry MallakConstruction Was Feverish.IME 6140 Dr. Larry MallakThe Project Manager Took Heat.IME 6140 Dr. Larry MallakThe World of Project Management4IME 6140 Dr. Larry MallakMorgan Stanley & 9-11• Had elaborate backup systems.• Drilled after 1993 WTC bombing. Militaristically. Viet Nam vet led this.• When north tower was hit, evacuated immediately out of south tower.• Lost only 7 of 2700 employees after taking a nearly direct hit.IME 6140 Dr. Larry MallakWhat seemed like incredible extravagance on September 10 looked like pure genius on September 12.The resilience of Morgan Stanley’s preparedness projects (in Coutu, 2002)IME 6140 Dr. Larry MallakDenial is Not a River in Egypt:The Hubble Space Telescope• 15 years, $1.7 billion project• System went on-line, PM Charlie Pellerinwent to Japan• On the way home, he changed planes in STL, called co-worker who asked him to get any newspaperIME 6140 Dr. Larry MallakHUBBLE LAUNCHED WITH FLAWED MIRROR (A NATIONAL DISASTER)St. Louis Post DispatchIME 6140 Dr. Larry MallakButt of Many Jokes• Late night comedians•Wolf Trap concert– Microphone not working, went to a 2ndmike: “Aren’t you glad the idiots who built the Hubble Space Telescope didn’t build this sound system? At least we have a backup.”• Naked Gun 2 ½: bar scene with three photos in background—Hindenberg on fire, Titanic sinking, and the Hubble Space Telescope IME 6140 Dr. Larry MallakHeroic Effort Needed To Save Hubble.• Needed $60 million, only had $1 million.• Worked his network to produce the $59 million in one hour.• Put his badge on the table for one crucial person (in Denver, overcommitted).• PM and project were successful.• Hubble’s specs far exceed original specs5IME 6140 Dr. Larry MallakProject Management Trends• Rise of risk management• New scheduling techniques (CCPM)• Organizational structures•Project team coordination• Control• Impact of new technologies (Internet, wireless, PDAs)IME 6140 Dr. Larry MallakValue of Project Management•Horizontal communications•Speed•Focus• Flexibility•SynergyIME 6140 Dr. Larry MallakIssues in Project Management• Multicultural/Global Projects– Hiring locals vs. expats– Language and custom differences• Different expectations• Norms of time• Socioeconomic Environment•Legal EnvironmentIME 6140 Dr. Larry MallakIcebreaker• What’s Your Innovation Quotient?(Copy of instrument)IME 6140 Dr. Larry MallakWhy Take a Project View?• Proven success (GE, others).• Aligned with customers, not bosses.• Focuses selected resources on outcomes.• We know who’s in charge.• Reduce uncertainty.• Resilient.• Sometimes you need to bend the rules.• Bricolage—essential skillIME 6140 Dr. Larry MallakProject Orientation is Popular Because of:• Shortened product life cycles (planned obsolescence)• Narrow product launch windows• Huge influx of global markets• More complex and technical products• Low inflation (can’t rely on price increases for profits)6IME 6140 Dr. Larry MallakUncertainty is the difference between the information you have and the information you need.Source: J. Galbraith, 1973IME 6140 Dr. Larry MallakFive Pursuits Range from Uncertain to Certain.Perplexity - Can specify neither the start nor the end.Problem - Can specify the start but not the end.Program - Know the start and have qualitative fix on the end.Project - Know the start and have specifications for the end.Process - Repeatedly achieve the same known end.UncertaintyIME 6140 Dr. Larry MallakHow Do We Leverage the Project Approach?•Technology• Opportunism•No borders•Trust• ExcellenceIME 6140 Dr. Larry MallakA Project:• is a one-time activity with a defined objective• has an associated schedule or due date• has an established budget.IME 6140 Dr. Larry MallakP.M.’s Manage Cost, Schedule, & Performance. CostSchedulePerformance IME 6140 Dr. Larry MallakBut Critics Turn the Triangle Into a Pyramid.CriticsCostPerformance Schedule7IME 6140 Dr. Larry MallakPerformance, Cost, and Time Project TargetsIME 6140 Dr. Larry MallakProject Life CycleIME 6140 Dr. Larry MallakProject Life Cycle:Time Distribution of Project Effort•Conception• Selection• Planning, scheduling, monitoring, control•Evolution and terminationIME 6140 Dr. Larry MallakProject Life Cycle:Increasing Marginal Returns• Return as applied to late stages in PLC•Compare to “standard” PLC showing DECREASING marginal return in late stages of PLCIME 6140 Dr. Larry MallakProject Life Cycle:Reduce Uncertainty of Cost EstimateFigure 1.6IME 6140 Dr. Larry MallakProjects Range in Their Innovation.• Derivative projects—incremental improvements, CI• Breakthrough projects—new gen products (PDA, T-Mobile Hot Spot)• Platform projects—outcome serves as a platform for a line of products (new SUV body style)• R&D projects—working with basic knowledge to produce breakthroughs, platform, and derivative innovations8IME 6140 Dr. Larry MallakCost Engineering (R2)• Majority of rework and problems on project cycle time because:– Poor definition of project