international project management

THE INTERNATIONAL PROJECT MANAGEMENT MBA PHAN DINH QUYET Phone: 0968656566 Email: phandinhquyet.hh@gmail.com THE PRINCIPLES OF INTERNATIONAL PROJECT MANAGEMENT OUTLINE Topic 1: Overview international project management Topic 2: Planning your project Topic 3: Quality management Topic 4: Risk management Topic 5: Contract management Topic 6: Cost management and project follow- up Topic 7: Information management Topic 8: Team management and the role of leader Textbooks [1] International Project Management: Leadership in Complex Environments By Thomas W Grisham John Willey and Sons, Inc Recommended readings Books and Articles: [1] International Project Management By Kathrin Köster [2] International Project Management Bennet Lientz, Kathryn Rea Internet: [1] www.marketingchienluoc.com/ [2] www.marketingvietnam.net/ [3] www.pmi.org STT Assessment Percentage Details Attendance and Participation 10% - Check attendance times per meeting Note: Absence time is counted as absence ½ class meeting Students who are absent more than 20% of class meetings will not be allowed to attended final exam Students who actively participate in the lecture times will receive bonus point Group study/Presentation 20% Group report (50%) + Address the issues + In-depth, logical analysis, effective use of principles and collected data + Format and writing + Creativity Presentation (50%) + Content and powerpoint format + Questions and Answers + Presentation skills + Teamwork during presentation STT Assessment Percentage Details Write report of group study 10% Students will have hours to write and group report on the result Assessment: + Professionalism during the internship + Quality of the report Final 60% Final Exam: Includes sections – MCQs and Problems 90 minutes MCQs include 20 questions (total marks) Problems include questions, in which students are to choose questions (total marks) Assessment: MCQ section: Each correct answer worth 0.25 mark, wrong answer will not be penalized What is a Project? • Project as “an endeavour in which human, material and financial resources are organized in a novel way to undertake a unique scope of work, of given specification, within constraints of cost and time, so as to achieve beneficial change defined by quantitative and qualitative objectives” (Turner, 1993) Ex:Time and size – a journey from Hanoi to Da Nang province - Or big cross- national infrastructure project, the 15.5 kms long Oresund coast-to-coast link connecting Denmark (Continental Europe) with Sweden (Scandinavia) which was opened in 2000 with billion Euros (Flyvberg et al, 2003) THE PRINCIPLES OF INTERNATIONAL PROJECT MANAGEMENT PROJECT MANAGEMENT What is a Project? • • • • • from concept to reality a start / an end "never made before" a system A part of primary activities or an activities of the value chain Complexity : • • Activities : large amount, linked together Actors : specific roles, interactions Cost, Quality, Time Environment which reacts with the Project THE PRINCIPLES OF INTERNATIONAL PROJECT MANAGEMENT PROJECT MANAGEMENT CONSTRAINTS, DIFFICULTIES : •limited resources •limited time, co-ordination •unclear responsibilities •poor anticipation •permanent evolution THE PRINCIPLES OF INTERNATIONAL PROJECT MANAGEMENT Characteristics of an international project Unique Objectives Context Risky Uncertainty Organization Complexity Limited Duration, Scope, Financial Resources, Human Resources THE PRINCIPLES OF INTERNATIONAL PROJECT MANAGEMENT Purposes of international project - Search for new geographical presence or new international stakeholders Increase of global market share, market power, global political power or global effectiveness Realization of efficiency gains Access to scarce and unique resources Reduction of risk Ex: Tata motor (India + US) THE PRINCIPLES OF INTERNATIONAL PROJECT MANAGEMENT TEAM MANAGEMENT THE PROJECT MANAGER’S ROLE TEAM MANAGEMENT Jean Pierre BELICAR 121 THE PROJECT TEAM CHARACTERISTICS OF THE PROJECT TEAM • • • • Permanent members (limited number) Temporarily assigned members (full time or part time according to trades / necessary competence) Flexible Aptitude to exchange opinions, discussion, decision OPERATING MODE •By consensus rather than hierarchical •Keep in mind the Objective to be achieved •Definition of the field of autonomy and available means •Existence of an “appeals /arbitrator” TEAM PROJECT MANAGEMENT REVIEW TEAM MANAGEMENT Jean Pierre Jean Pierre BELICAR BELICAR 122122 122 Qualifications of the participants Flow-charts Change of behaviour Types of skills Note of delegation Response time Degree of involvement Functional procedures Cohesion, motivation Availability FORMING THE TEAM • Establishing a common language • Definition of the mission • Sharing out the roles • Presentation of the Project content • Mobilisation on the mission • Taking over of one’s role FIXING THE OPERATING RULES ANIMATION •Circulation, distribution of information within the Team •Team working procedures •Evaluation of participation •Delegation •Planning of the work tasks •Tools, frame of reference to be used • Planning the review meetings • Follow-up of individual work • Motivation • Integration of the tasks • Refocusing on the objectives • Maintaining the consensus • Coherence towards those outside the team TEAM MANAGEMENT Jean Pierre BELICAR 123 123 THE PROJECT TEAM SELECTION OF THE MEMBERS •Appropriateness of competences / function to be fulfilled •Relational ability •Availability •Motivation •Experience in comparable situations •Creativity •In harmony with other team members TEAM MANAGEMENT TEAM MANAGEMENT Jean Pierre Jean Pierre BELICAR BELICAR 124 124 HIERARCHY OF NEEDS SATISFYING THE NEEDS - ACCORDING TO MASLOW Do on the Project that which one cannot usually in one’s normal activities but which one knows one is capable of doing SELF- FULFILMENT ESTEEM or GRATITUDE SENSE OF BELONGING or LOVE SAFETY Recognition for one’s contribution (+/-) To be listened to in Team discussions What will I when this project ends ? PHYSIOLOGICAL A fair salary, the tools to the work Jean Pierre Jean Pierre BELICAR BELICAR TEAM TEAM MANAGEMENT MANAGEMENT 125 125125 125 MAIN OBJECTIVES OF THE PROJECT MANAGER WHAT DO THEY EXPECT FROM THE P.M ? ● The CUSTOMER ● The MANAGEMENT ● The PROJECT TEAM THE PROJECT MANAGER’S ROLE PROJECT MANAGER’S ROLE TEAM MANAGEMENT Jean Pierre Jean Pierre BELICAR BELICAR 126 126 MAIN OBJECTIVES • • • • • • • • • Maintain or improve the expected gross margin Derive, co-ordinate, and control the Project team activities Manage costs, schedule, and performance of the Contract Establish a commercial relationship with the Client Maintain and improve this relationship Negotiate all Project matters during the Contract period Facilitate the cohesiveness of the Project team Stimulate the performance of each team member Obtain the Final Acceptance of the Contract Long term relationship with a good margin THE PROJECT MANAGER’S ROLE PROJECT MANAGER’S ROLE TEAM MANAGEMENT Jean Pierre Jean Pierre BELICAR BELICAR 127 127 MANAGING THE PROJECT BASIC FUNCTIONS Pert, Gantt ROI, TRI, cash-flow Master plan Decision making WBS WP Anticipate Risks, Duration, Work load Control: T,C, Q Inputs/ outputs OBS Project Cycle Assignments Milestones Decide ORGANISATION Team building COMMUNICATION Collect data People evaluation Value analysis LEADING Define responsibilities Delegation Board MONITORING COORDINATION Activity sheet configuration PLANNING Project monitoring Project meetings Leadership Managing meetings Resources allocation Present the project Set up decision Logistic Support Active listening, Behaviour Function, Know-how, Tools and Methods THE PROJECT MANAGER’S ROLE PROJECT MANAGER’S ROLE TEAM MANAGEMENT THE PROJECT MANAGER’S ROLE Jean Pierre Jean Pierre BELICAR BELICAR 128 128 MAIN AREAS OF ACTION ● TECHNICAL ● COMMERCIAL ● MANAGEMENT ● LEADERSHIP THE PROJECT MANAGER’S ROLE PROJECT MANAGER’S ROLE TEAM MANAGEMENT Jean Pierre Jean Pierre BELICAR BELICAR 129 129 TECHNICAL ● Responsible for the Basic Technical Specification ● Achieve the Contracted performance level ● Ensure total respect of the technical specification ➝ by the Design Office ➝ by the Suppliers ➝ by the Sub-contractors Our Projects carry a high Technical risk Careful follow-up is essential THE PROJECT MANAGER’S ROLE PROJECT MANAGER’S ROLE TEAM MANAGEMENT Jean Pierre Jean Pierre BELICAR BELICAR 130 130 COMMERCIAL ● Commercial interface with the Client, ● Pursue commercial negotiation during the Project ● Defend the rights to obtain compensation ● Obtain additional works and change orders ● Be prepared to present the Notice of Claim ● However, improve the commercial relationship Nothing is to be given without compensation THE PROJECT MANAGER’S ROLE PROJECT MANAGER’S ROLE TEAM MANAGEMENT Jean Pierre Jean Pierre BELICAR BELICAR 131 131 MANAGEMENT ● Utilise the tools and methods of Project follow up ● Lead the Project meetings ● Decide corrective actions ● Follow up closely the evolution of identified risks ● Communicate in writing with your team ● Promptly inform Management of all important events Look for and Manage all deviations THE PROJECT MANAGER’S ROLE PROJECT MANAGER’S ROLE TEAM MANAGEMENT Jean Pierre Jean Pierre BELICAR BELICAR 132 132 LEADERSHIP ● Determine the needs of functional departments ● Evaluate the cohesiveness of the Team ● Define the mission and the task of each member ● Delegate work according to the functions defined ● Determine the communication procedure ● Create a Team spirit - stimulate individual performance The PM is the “Conductor of the orchestra” THE PROJECT MANAGER’S ROLE PROJECT MANAGER’S ROLE TEAM MANAGEMENT Jean Pierre Jean Pierre BELICAR BELICAR 133 133 • PROJECT MANAGEMENT TOOLS ● Project Scheduler (PSN, Microsoft Projects) ● Material Status Report ● Man Power Loading (histogram) ● Project Reporting Forms (Activity report : progress report, engaged cost with S-curve, etc… ) ● Project Management Procedures (Procurement, Workshop Installation & Testing, Quality, Safety, etc… ) ● Minutes of meeting forms ● … /… THE PROJECT MANAGER’S ROLE PROJECT MANAGER’S ROLE TEAM MANAGEMENT Jean Pierre Jean Pierre BELICAR BELICAR 134 134 MANAGING THE PROJECT Complexity Strategy for : Project Strategy •Partnership •Alternatives •Synergy with other projects Project Leadership Project Management Cost constraint Technologies ROI Management Uncertainty •Leading •Reactions facing risks •Co-ordination •Keeping under control •Sound organisation •Clear statement of schedule, budget, responsibility •Realistic view of progress Time constraints THE PROJECT MANAGER’S ROLE PROJECT MANAGER’S ROLE TEAM MANAGEMENT Jean Pierre Jean Pierre BELICAR BELICAR 135 135 [...]... PRINCIPLES OF INTERNATIONAL PROJECT MANAGEMENT 13 What is project management? Project management as “the process by which projects are defined, planned, monitored, controlled and delivered such that the agreed benefits are realised” (Association of Project Management, 2006) Project management consists four main phases (Frame, 2002) INITIATING > PLANNING > CONTROLLING > COMPLETION THE PRINCIPLES OF INTERNATIONAL. .. FIELDS Environment Scope management Times management Cost management Quality Team management management Start P Project environment Project charter Customer Objectives End date ROI Communication Risks management Supplies and Contracts management Project manager managt Risk identification Key suppliers Risk mitigation Supplies schedule assigned Final user R Organisation Planning Project master plan O Scope... INTERNATIONAL PROJECT MANAGEMENT PROJECT LIFE CYCLE New project TAKE-OFF DESIGN Call for tender Needs Close-out Constraints Feasibility DEVELOPMENT Design RUNNING Estimate Maintenance Risk analysis Revamping Negotiation Supplies Adjustments Erection Guarantees Tender Commissioning CONTRACTING REALISATION Take-over Award THE PRINCIPLES OF INTERNATIONAL PROJECT MANAGEMENT 15 PROJECT MANAGEMENT SCOPE TIME Management. .. THE PRINCIPLES OF INTERNATIONAL PROJECT MANAGEMENT 11 WHAT DOES A PROJECT ENTAIL ?: RISKS : unforeseen events result of a decision on a long term ACTIVITIES : coordination, innovation ACTORS : responsability, optimal use COMPLEXITY : progressive knowledge while completion CONTRACT : fixed price, milestones for delivery THE PRINCIPLES OF INTERNATIONAL PROJECT MANAGEMENT 12 PROJECT MANAGEMENT CUSTOMER... Documentation Supplies management Risks Project Estimate Management Configuration Knowledge Mgt Management Capitalization Control Management Master Plan Quality Identification CUSTOMER •Needs and requirements •Contingencies •Contracting documents Project reviews Implementation •Tender elaboration •Industrial set-up •Bonds •Conditions for realisation Logistic Maintenance Management Management Execution... links RESULTS : CONTEXT of PROJECT the PROJECT DESCRIPTION PLANNING PROJECT BUDGET ORGANISATION CONTROL REVIEWS PLAN PLANNING APPENDIX THE PRINCIPLES OF PROJECT MANAGEMENT 22 MATRIX ORGANISATION Marketing Design Production Manager Manager Manager Site Manager Project Manager Contract Complies with schedule? Project Complies with cost ? Manager Which impact on : End at Completion Project Manager N S IO... which use) Scope (of what it’s made) Performances PROJECT MANAGEMENT CONTRACT Cost at completion ? CUSTOMER R Planning E End at completion ? A Needs Décisions L I WBS Actors Activities Resources Contingencies S Budget OBS A Activity Sheets T Changes management I Risks O N ENVIRONMENT TRANSFER RISKS THE PRINCIPLES OF INTERNATIONAL PROJECT MANAGEMENT 21 PROJECT MASTER PLAN Identification Development Approval... and integration process RISK Management •Identification •Criticity •Prevention •Monitoring TECHNOLOGY Management CONTRACT Management •Tool for project SUPPLIES & SUB- SYSTEM INFORMATION CONTRACTING Management Management completion •Shelter for risks •Crossed involvement •Supplies planning •Supplier’s tendering •Sourcing •Guaranties •Distribution flow chart •Reporting Project reviews •Close-out, feed-back... PRINCIPLES OF PROJECT MANAGEMENT 23 PROJECT ENVIRONMENT To install the project in an environment which reacts To organise the transfer process to the customer, to final user CUSTOMER •People •Techniques •Methods •Suppliers Present activities PROJECT Usual way of work MANAGER Competition Final user Customer environment (economic, social, cultural, regulation, ) THE PRINCIPLES OF PROJECT MANAGEMENT 24... 15 PROJECT MANAGEMENT SCOPE TIME Management COST Management WBS CBS Project life cycle •Planning (tasks, •resources) •Key events •Progress monitoring •Life Cycle Cost •Internal Rate Ratio •ROI •Estimate •Budgeting •Cost-control QUALITY Management •Performance criteria •Acceptance •Registration Project Quality Plan PROJECT MANAGER Scope definition TEAM Management OBS •Team building •Assignments •Responsibilities