1 Project Management Basics

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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?

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First it was a

project…

• New

product

• New

process

• New

event

…………………………………………

And now we

need

it more and

more

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Hierarchy

(linear structure)

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Functional/

product/customer

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Matrix

structure

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Do we really

need

a

definition?

A

temporary

endeavor

undertaken to create a

unique

product, service, or result
……………………………..
What is

your

definition?

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Some

specific

features

• C

hange

• G

oal

• L

imited

t

ime

• L

imited

b

udget

• L

imited

r

esources

• U

niqueness

• L

egal

f

oundation

• M

anagement

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What

kinds

of projects do we

know?

We can

distinguish

projects by:

•Field
•Complexity (mono-, multi-, mega-)
•Scale
•Duration

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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.

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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

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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

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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?

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Project

Roles

and

Responsibilities

Project

Manager

Project

Team

Members

Executive

Sponsor

Project Sponsor and/or Project

Director

Steering Committee

Customers 

Stakeholders
Vendors   

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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

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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

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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

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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.

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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

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Risks of the project:

Market

The probability of

•blockage o

f the market

•advancing the project by

competitor

•unexpected

competition

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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

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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

objectivess

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

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Document Outline


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