Project Management Implementing Corporate Project Management System Spider Project Team
Organization has serious problems if its projects are not managed properly • Project problems are frequently caused by ineffective project management. As the result projects are late, project costs exceed expected values, organization has problems with clients, stakeholders, and personnel motivation. • Corporate project management system helps to solve these problems.
Project Management Requirements • Good project management requires: • Defining measurable and achievable goals that shall be met in the specified time period, • Defining proper project success criteria that will motivate project personnel to achieve organizational business goals, • Application of project management software that helps to plan, to analyze, and to control project execution, • Implementation of the organizational structures that support project management processes, • Implementation of the project participants award and recognition system that motivates project teams to achieve project goals.
Project Management Tasks • Practically project management helps to solve the following tasks: • To initiate projects basing on reliable estimates of future benefits, • To create project schedules and budgets that optimize limited resource usage, • To develop an optimal plan for project financing and supplies, • To improve project stakeholders communications,
Project Management Tasks • To organize proper project performance management and contract administration, • To analyze project risk and uncertainties and to create contingency plans and reserves, • To simulate project management decisions using project computer model before their implementation, • To manage project archives and knowledge databases.
Project management Benefits • American statistics shows that • Project Management implementation saves 10-15% of project budgets, • Project Management average cost is 6.5% of the project cost.
Project management Benefits • Project Management became very popular because its benefits are obvious. • Many enterprises like ATT, Hewlett Packard, Boeing implemented new approach to the corporate management that is called Management by projects. • PMI developed new standard that is called OPM3 (Organizational Project Management Maturity Model). Unlike previous standards OPM3 describes not one project management but corporate project management system.
Project Computer Simulation • Modern Project Management is based on computer aided project planning, performance analysis and decision making. • Project Management software was one of the first applications developed for the personal computers. • We are proud that Spider Project software developed in Russia is most functional and powerful PM software ever made.
Project Management Software • Project Management software: • Creates reliable project schedules that optimize resource usage and takes into account all project constraints like resource, calendar, financial and supply limitations. • Calculates project material requirements at any time period. • Calculates project budget and financial requirements for any time period. • Calculate project resource (labor, machines) requirements for any time period.
Project Management Software • Collects project performance information and adjusts project plan basing on performance results. • Forecasts future project results and shows any deviations from the approved baseline. • Controls project contracts performance. • Analyzes risk and uncertainties and calculates necessary contingency reserves. • Analyzes trends of project parameters. • Supplies project stakeholders with the reliable estimates of project performance.
Project Management in Russia • Project Management becomes more and more popular in Russia and Eastern Europe. • In Russia it is used in many industries like Aerospace and Defense, Engineering, Construction, Metallurgy, Retail, Mining, Ship Building, Telecommunications, Banking, Software Development, System Integration, Power Supplies, Oil & Gas, etc.
Project Management Implementation • Project Management implementation requires: • Development and Implementation of the corporate project management standards, • Large scale corporate training – it is necessary to speak common professional language, • Implementation of the project management software, • Creation of the new organizational unit that is usually called Project Management Office (PMO).
PMO • PMO usually includes following departments: • Methodology • Analysis • Archive • Portfolio Management
PMO –Methodology Department • Main functions of methodology department: • Development and actualization of the Project Management Guidelines and other corporate PM standards, • Project staff training, • Internal consulting and coaching, • Development and actualization of the organization knowledge base.
PMO –AnalysisDepartment • PMO Analysis department: • Develops and works with the project computer models, • Helps project managers with project planning, performance monitoring and decision making, • Supplies project stakeholders with the performance reports and other necessary information.
PMO –ArchiveDepartment • PMO Archive department: • Manages project archives for current projects, • Creates and maintains the library of project archives.
PMO –Portfolio ManagementDepartment • PMO Portfolio Management department functions: • Project Portfolio Management, • Establishment of project priorities, • Dealing with conflicting and competing project requirements.
Critical Success Factors • Project Management System can be successfully implemented if it is based on: • Strong Support of the top management, • Corporate norms and standards, • PM personnel reward and recognition system, • PM software tools, • Staff education. • Constant Top Management support is the key success factor!
Stages of PM implementation • Project Management System implementation project consist of three main phases: • Initiation • Pilot Project • Corporate project management system
Initiation • Initiation includes: • Education of top management and key project staff • Project Charter Development • Choice of the pilot project • Implementation planning and budgeting
Pilot Project • Pilot Project is necessary for applying PM tools and techniques to the real life project in your organization • During pilot project PM approaches and techniques will be used and adjusted to the organization specifics and needs • Successful pilot project helps to overcome personnel resistance to change.
Corporate PM system • Pilot Project helps to develop internal norms and standards that can be used in other projects • Implementation of these standards in every project is necessary for project portfolio management implementation • At this stage organizational changes like creating Project Management Office will be done • At this stage corporate project resource management will be implemented.
Corporate PM system • Overall Corporate PM system implementation takes from one to two years and brings remarkable results.
Our Clients • We have many happy customers in Russia and abroad. Some of them are listed below: • Russian Ministry of Defense • Russian Aluminum • United Metallurgical Company (Russia) • Metalen (Ukraine) • Central Telegraph (Russia) • Romtelecom (Romania) • Connex Vodafone (Great Britain) • Rosatomstroy (Russia) • Ozer Construction (Turkey) • Tecton Ltd (Hong Kong) • Caspian Pipeline Consortium • Petergaz (Netherlands) • Northern Shipyard (Russia) • 1st Power Generating Company (Russia) and many others
Thank you • Thank you for your time. • We’ll be glad to answer your questions and to show Spider Project software and examples of the real projects. • Our E-mail addresses: • firstname.lastname@example.org • email@example.com • Visit our Web site: www.spiderproject.ru
Appendix:Spider Project advantages • In this Appendix we will describe some advantages of Spider Project software. • Any number of work, resource and cost breakdown structures used in one project or portfolio. • Ability to work with activity quantities (volumes), not only durations as in other software. This feature permits to apply corporate norms like material requirements and costs per unit of volume. • Ability to work resource productivities that define activity durations. Corporate norms can include resource productivities for typical resource assignments.
Appendix:Spider Project advantages • Resource constrained schedule optimization. Project schedules created by Spider Project are usually shorter that the schedules created for the same project by other PM software packages. • Project schedules are calculated taking into consideration financial and supply constraints. This feature is unique. • Calculation of resource critical path (critical chain) and feasible activity reserves. • Any number of cost components, multicurrency. • Simulation of income and supplies, calculation of NPV, IRR, payback period with discounting.
Appendix:Spider Project advantages • Risk simulation and calculation of necessary contingency reserves. • Trend analysis for any project parameter. • Management of success probability trends. • Keeping project archives. • No restrictions at all, fast work with the very large models. • Ability to work with any standard database (Oracle, SQL Server, Access, Lotus) and export/import to MS Project and Primavera Enterprise. • This list is not full, we can show a lot more if necessary.