First lecture for student of Lublin University of Technology, Poland

1. 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?

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

3. Hierarchy (linear structure)

4. Functional/product/customer

5. Matrix structure

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

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

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

9. 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.

10. 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

11. 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

12. 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?

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

14. 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

15. 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

16. 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

17. 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.

18. 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

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

20. 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

21. 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