INTRODUCTION TO PRODUCTION

MANAGEMENT: Key features of project management: 7. A project might have two chains of
command, one functional and one project,
1. A single person, the project manager, heads and people in a project report to both a project
the project organization and functions manager and a functional manager
Objective:
independently of the normal chain of
1. Provide an introduction to the concept of command. The project organization reflects the 8. Decision making, accountability, outcomes,
project management cross-functional, goal-oriented, temporary and rewards are shared between the project
(Definitions, Functions, Project life cycles and nature of the project. team and supporting functional units.
phases)
2. The project manager is the person who brings 9. Although the project organization is
Project together all efforts to meet project objectives. temporary, the functional or subcontracting
- (based on PMI) Defines as “a temporary units from which it is formed are permanent.
endeavor undertaken to produce a 3. Because each project requires a variety of When a project ends, the project organization is
unique product, service, or result” skills and resources, the actual project disbanded and people return to their functional
- is done only one time work might be performed by people from or subcontracting units.
- should have definite starting and different functional areas or by outside
ending points (time), a budget (cost), a contractors. 10. Project management sets into motion work
clearly defined scope—or magnitude of in numerous supporting functions
work to be done, and specific 4. The project manager is responsible for such as HR, accounting, procurement, and IT.
performance requirements that must integrating people from the different
be met functional areas or contractors who work on Table of the differences and similarities
the project. between operational and project activities
- (based on J.M. Juran) project as a
problem scheduled for solution
5. The project manager negotiates directly with
Project Management functional managers who might be
- an interrelated group of processes responsible for the individual work tasks and
that enables the project team to personnel within the project.
achieve a successful project
6. While the project manager focuses on
delivering a particular product or service
- is the application of specific knowledge, at a certain time and cost, functional managers
skills, tools, and techniques to plan, must maintain an ongoing pool of resources in
organize, initiate, and control the support of organizational goals. As a result,
implementation of the project, in order conflict may arise between project and
to achieve the desired outcome(s) functional managers over the time and talent to
safely be allotted to a project.
The relationship among the PCTS constraints A. Pure project management - a aspects of a product’s production scheduling,
can be written as follows: complete, self-contained organization inventory, distribution, and sales. The product
is created. Resources belong to the project and manager coordinates and expedites efforts of
“Cost is a function of do not have to be borrowed. product development launch, manufacturing,
C = f (P, T, S) Performance, Time, and distribution, and support
Scope.” B. Matrix management - the project
organization is created from resources allotted
(borrowed) from the functional units. The PROJECT CONCEPT:
Note: The sponsor can assign values to any
three variables, but the project manager must project must share these resources with other
- is a complete documentation of the
determine the remaining one. concurrent projects and with the functional
proposed project but needs to be
areas from which they are borrowed
implemented yet
General criteria for determining when to use
project management techniques and
organization (Cleland and King) - consists of the following documentation
1. Unfamiliarity 2. Program Management - is often used > Project feasibility study
2. Magnitude of the Effort interchangeably with project management > Detailed drawings, plans and
3. Changing Environment due to the similarities of programs and projects: specifications
4. Interrelatedness both a.) are defined in terms of goals or > Project cost estimate
5. Reputation of the Organization objectives about what must be accomplished; > Permits
b.) emphasize the time period over which goals
> Social acceptability of the project
or objectives are to be pursued; and c.) require
Life Cycle of a Troubled Project > Requirements for fund sourcing
plans, budgets, and schedules for accomplishing
the goals
- also called project proposal
3. New Venture Management - Project KEY CONCEPTS OF PROJECT MANAGEMENT
management resembles a type of management 1. Ensure that one person, and only one person,
used in consumer-oriented firms for generating is responsible for the project scope, budget,
new products or markets. In new venture and schedule
management a team is specially created to find 2. Don't begin work without a signed contract,
new products or markets that fit the regardless of the pressure to start
organization’s specialized skills, capabilities, and 3. Confirm that there is an approved scope,
resources. Once it has defined the product, the budget, and schedule for the project
team may go on to design and develop a 4. Lock in the project scope at the beginning
product, then determine the means for and ensure there is no scope growth without
producing, marketing, and distributing it approval
5. Make certain that scope is understood by all
FORMS PROJECT MANAGEMENT
4. Product Management - refers to a single parties, including the owner
1. Basic Project Management - is implemented person having authority to oversee all 6. Determine who developed the budget and
in two widely used forms—pure project schedule, and when they were prepared
and matrix
7. Verify that the budget and schedule are PHASES OF PROJECT: - involves identifying the expectations
linked to the scope that all of the involved parties have
8. Organize the project around the work to be 1. INITIATION AND DEFINITION PHASE – with regard to the project result
performed, rather than trying to keep people Idea and What?
busy 2. DESIGN PHASE – How? CATEGORIES OF PROJECT REQUIREMENTS:
9. Ensure there is an explicit operational work 3. DEVELOPMENT PHASE – How to
plan to guide the entire project implement 1. Preconditions - include legislation,
10. Establish a work breakdown structure that 4. IMPLEMENTATION AND CONTROL working-condition regulations and
divides the project into definable and PHASE – Implementation and approval requirements
measurable units of work Maintenance 2. Functional requirements -
11. Establish a project organizational chart that 5. FOLLOW UP OR CLOSURE PHASE – Hand requirements that have to do with the
shows authority and responsibilities for all team Over quality of the project result
members 3. Operational requirements - involve the
12. Build the project staff into an effective team use of the project result
that works together as a unit 4. Design limitations - requirements that
13. Emphasize that quality is a must, because if 1.A) INITIATION PHASE involve the actual realization of the
it doesn't work it is worthless, regardless of cost - is the beginning of the project project
or how fast it is completed - the idea for the project is explored
14. Budget all tasks; any work worth doing and elaborated 2. DESIGN PHASE
should have compensation - goal of this phase is to examine the - one or more designs are developed,
15. Develop a project schedule that provides feasibility of the project with which the project result can
logical sequencing of the work required to - decisions are made concerning who is apparently be achieved
complete the job to carry out the project, which party (or - include sketches, flow charts,
16. Establish a control system that will parties) will be involved and whether prototypes, etc.
anticipate and report deviations on a timely the project has an adequate base of
basis so corrective actions can be taken support among those who are involved.
17. Get problems out in the open with all 3.DEVELOPMENT PHASE
persons involved so they can be resolved Questions to be answered in the initiation - everything that will be needed to
18. Document all work, because what may phase include the following: implement the project is arranged
seem irrelevant at one point in time may later • Why this project? - suppliers or subcontractors are brought in,
• Is it feasible?
be very significant a schedule is made, materials and tools are
• Who are possible partners in this project?
19. Prepare a formal agreement with • What should the results be?
ordered, instructions are given to the
appropriate parties whenever there is a change • What are the boundaries of this project personnel and so forth
in the project (what is outside the scope of the project)?
20. Keep the client informed; they pay for
everything and will use the project upon 4.IMPLEMENTATION and CONTROL PHASE
completion 1.B) DEFINITION PHASE - involves the construction of the actual
- requirements that are associated with project result
a project result are specified as clearly - project becomes visible to outsiders
as possible - the ‘doing’ phase
Note: At the end of the implementation phase,
the result is evaluated according to the list of
requirements that was created in the definition
phase. It is also evaluated according to the
designs

5.FOLLOW UP / CLOSURE PHASE

- everything is arranged that is necessary to
bring the project to a successful completion.
* writing handbooks,
* providing instruction and training for
users,
* setting up a help desk,
* maintaining the result,
* evaluating the project itself,
* writing the project report,
* holding a party to celebrate the result
that has been achieved,
* transferring to the directors
* dismantling the project team.

FUNCTIONS OF MANAGEMENT
Management is often summarized into
five basic functions:
 Planning
 Organizing
 Staffing
 Directing
 Controlling
  Planning - is the formulation of a course  Controlling - is the establishment of a 8. Communicate the project plan to clearly
of action to guide a project to system to measure, report, and forecast define individual responsibilities,
completion. deviations in the project scope, budget, schedules, and budgets
- It starts at the beginning of a and schedule. The purpose of project 9. Remember that the best-prepared plans are
project, with the scope of work, and control is to determine and predict worthless unless they are implemented
continues throughout the life of a deviations in a project so corrective
project. actions can be taken. PROJECT MANAGER'S ROLE IN ORGANIZING
- The establishment of -Project control requires the 1. Organize the project around the work to be
milestones and consideration of continual reporting of information in a accomplished
possible constraints are major parts of timely manner, so management can
2. Develop a work breakdown structure that
planning. respond during the project rather than
divides the project into definable and
. afterwards.
 Organizing - is the arrangement of - Control is often the most measurable units of work
resources in a systematic manner to fit difficult function of project 3. Establish a project organization chart for each
the project plan. management project to show who does what
- A project must be organized 4. Define clearly the authority and responsibility
around the work to be performed. PROJECT MANAGER'S ROLE IN PLANNING for all project team members
There must be a breakdown of the work 1. Develop planning focused on the work to be
to be performed into manageable units, performed
which can be defined and measured. 2. Establish project objectives and performance PROJECT MANAGER'S ROLE IN STAFFING
The work breakdown structure of a requirements early so everyone 1. Define clearly the work to be performed, and
project is a multi-level system that involved knows what is required work with appropriate department
consists of tasks, subtasks, and work managers in selecting team members
3. Involve all discipline managers and key staff
packages. 2. Provide an effective orientation (project goals
members in the process of planning and
estimating and objectives) for team members at
 Staffing - is the selection of individuals the beginning of the project
who have the expertise to produce the 4. Establish clear and well-defined milestones in
the project so all concerned will know 3. Explain clearly to team members what is
work. The persons that are assigned to
what is to be accomplished, and when it expected of them and how their work
the project team influence every part of
is to be completed fits into the total project
a project.
-People provide the knowledge to 5. Build contingencies into the plan to provide a 4. Solicit each team member's input to clearly
design, coordinate, and construct reserve in the schedule for unforeseen define and agree upon scope, budget,
the project. future problems and schedule
6. Avoid reprogramming or replanning the
 Directing is the guidance of the work project unless absolutely necessary PROJECT MANAGER'S ROLE IN DIRECTING
required to complete a project. The 1. Serve as an effective leader in coordinating
7. Prepare formal agreements with appropriate
people on the project staff that provide all important aspects of the project
parties whenever there is a change in
diverse technical expertise must be 2. Show interest and enthusiasm in the project
the project and establish methods to
developed into an effective team. with a "can do" attitude
control changes
3. Be available to the project staff, get problems
out in the open, and work out problems
in a cooperative manner
4. Analyze and investigate problems early so
solutions can be found at the earliest
possible date
5. Obtain the resources needed by the project
team to accomplish their work to
complete the project
6. Recognize the importance of team members,
compliment them for good work, guide
them in correcting mistakes, and build
an effective team

PROJECT MANAGER'S ROLE IN CONTROLLING

1. Maintain a record of planned and actual work
accomplished to measure project
performance
2. Maintain a current milestone chart that
displays planned and achieved
milestones
3. Maintain a monthly project cost chart that
displays planned expenditures and
actual expenditures
4. Keep records of meetings, telephone
conversations, and agreements
5. Keep everyone informed, ensuring that no
one gets any "surprises," and have
solutions or proposed solutions to
problems