Introduction to Project

Management
Dr Paul Baguley

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Teaching and Learning
• You will take part during the lecture through questions and
discussions.
• The lectures will refer to practical examples, for example Unmanned
Air Vehicles (UAVs) and other projects. Some of this will be through
simple desk top research.
• The Engineer is a useful resource for news and contemporary issues
in Projects. This is a popular online industry magazine found here:
https://www.theengineer.co.uk/
• At the end of each lecture please draw a concept map, a resource
about concept maps can be found here: TBA
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https://www.theengineer.co.uk/content/news/johnson-pledges-700m-to-sizewell-c 3
HOW ACCURATE DO YOU THINK THESE PREDICTIONS WILL BE
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AND WHY?
Poor planning and use of lessons learnt

Business Live
Poor planning

The Guardian Newspaper

Poor requirements
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Management
Why do project management?
• Everyone who graduates will work in a project team straightaway
• Nothing can really prepare you for being in a project, it will take you out of
your comfort zone, at least that aspect of it
• If you are a CFD (computational fluid dynamics) analyst you will work with
designers, material scientists, accountants, test engineers, project
managers, software vendors, procurement specialists……..in teams
• You will work with qualitative models as well as quantitative models, that
means working with models made of information, knowledge and words
• This course will contribute to this toolset

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 PESTLE analysis of a UAV (Unmanned Air Vehicle)
project in an OEM (Original Equipment
Manufacturer)
• Political
• Environmental
• Sociological
• Technology
• Legal
• Environmental

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Why not, PM is a hot research topic
• How can Artificial Intelligence improve projects?
• How can digital tools be used in projects, for example NX, CATIA, Solid
Works, Team Centre?
• How can data and big data be used in projects?
• How should teams be managed in projects?
• What is the optimal way of doing projects?

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 Project Management Research Topics

Source: Pinto 2022

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Project Management Body of Knowledge
• Association of Project Management (APM) (link to student
membership)
• PMI (Project Management Institute)
• Agile and DSDM
• Association of Cost Engineers (AcostE)
• The structure of the (Body of Knowledge) BoK demonstrates the
structure of how project management is conceptualised and
practiced in industry
• This is also reflected in this course structure

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Intended Learning Outcomes
• Describe how Engineers add value to a business through the delivery
of projects
• Define what is meant by a project and a project life cycle
• Identify the five main stages of project definition
• Identify how projects help to deliver a project’s strategy

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Characteristics of Projects
• What do you hear about projects in the news?

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The world is changing
• Globalisation
• VUCA (Volatility Uncertainty Complexity Ambiguity)
• Sustainability driven by politics and regulation
• Technology is a key fast moving competitive edge
• Complex and distributed supply chains
• New business models, for example availability based contracts
• Full life cycle consideration rather than just procurement cost
• Short and transient market opportunities

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Example Projects

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Example Projects
• Typhoon (one of the most integrated systems, requirements change)
• NHS software (waterfall approach to life cycle, large proprietary software project)
• Space Shuttle (cost benefit optimistic, command and control culture, high
technology)
• James Webb Telescope (one off, risky project, high profile and high impact)
• Scientific software at NPL (small projects, behind schedule)
• The Olympics (mega project)
• Brazilian World Cup
• Mars Lander (communication between project teams)
• Boeing versus Airbus (different solutions to market information and
requirements)
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Why do Projects go Wrong?
• Most Projects fail
• Poor requirements capture
• Inadequate cost estimating capability
• Scope creep
• Inadequate resources
• Late identification of variances from the plan
• Issues not managed

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Project Success Factors
• Cost
• Performance
• Schedule
• Customer and repeat business
• Wider Stakeholder Groups and their assessment
• Benefits realisation after the project
• Voice of the customer

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Example Disasters
• Space Shuttle Disaster
• The Sinclair C5
• Channel Tunnel
• Airbus A380
• Nimrod

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What is meant by a project?

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 Project definition
• "An endeavour in which human, financial and material resources are
organised in a novel way to undertake a unique scope of work, of given
specification, within constraints of time and cost, so as to achieve
beneficial change by quantitative and qualitative objectives” (Turner 1999)

• The APM defines a project as:

• “A unique transient endeavour undertaken to achieve a desired outcome”
• Project Management
• “the process by which projects are defined, planned, monitored, controlled
and delivered so that agreed benefits are realised”
Source: Turner, J.R., (1999), "Handbook of Project Based 20
Management
 Project Life Cycle
• Define: goals, specifications, tasks, responsibilities
• Planning: schedules, budgets, resources, risks, staffing
• Executing: Status reports, changes, quality, forecasts
• Closing: Train customer, transfer documents, release resources,
evaluation, lessons learnt

Larson and Gray

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BS 6709-1 2010 Standard
• Concept: basic ideas, business case, scope
• Feasibility: technical, environmental, commercial, economic viability
• Evaluation: application for funds, risk assessment
• Authorisation: approval, permits, strategy
• Implementation: design, development, installation and
commissioning
• Completion: performance tests, handover, post-project appraisal
• Operation: revenue earning, production, maintenance
• Termination: Decommissioning, disposal

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 Project Life Cycle and Effort

Pinto 2020 https://www.pmi.org/learning/library/project-termination-delay-1931 24

 Effort Impact curves
• The following curve compares the incurred cost to the committed
cost of a project. It is a well-known curve which may have originated
from a Rolls Royce study of a product development project. It has
been validated by many authors and is a commonly agreed rule of
thumb

Source: Huber et al 2016 25

Project Life Cycle costs
• Up to 80% of total life cycle cost for a system can be the use costs
during the use phase of the full life cycle

Manufacturing Costs, Design Costs

Operate, maintain, decommissioning costs

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 CADMID

https://www.research.manchester.ac.uk/portal/files/32381588/FULL_TEXT.PDF 27
 People in projects
• Projects are not just process and methods
• They involve people:
• “Am I able to define the range of motivational factors?”
• “Do I understand that individuals vary in what motivates them?”
• “Do I appreciate that individuals have an inherent hierarchy of need?”
• “Do I understand the varied communication styles and preferences of
members of the team?”
• “Do I understand the individual learning styles and development
cycles?”
Source: The lens collective from the APM 28
Project Management parts inform planning
• Risk and uncertainty management
• Cost estimating and management
• Quality management
• Supply Chain Management

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 Identify the five main stages of project
definition?
• Define the project scope
• Establish project priorities
• Create Work Breakdown Structure
• Integrate WBS with organisation
• Coding the WBS for the information system

Larson and Gray 2021

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 Project Development
• Project Goal and Project Need
• Project Charter
• Outline Business Case
• Statement of Work
• Detailed Business Case

Malone et al 31
Requirements Capture
• You are a customer wanting a fleet of UAVs for surveillance of (oil
field, wind turbines, sea rescue, military no go zone etc)
• What are your requirements?
• Are they precise?
• Do you need help with your requirements?
• How will you express them to the supplier? e.g. use cases
• Will you validate them?
• Will you prioritise them?

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 Step One: Project Scope Checklist
• Project Objective
• Product scope description
• Justification (for example the business case)
• Deliverables
• Milestones
• Technical requirements
• Limits and Exclusions
• Acceptance criteria

Larson and Gray 33

 Example scope statement
• TBA in class

aka statement of work for suppliers 34

Iron Triangle
Performance

• The iron triangle is the classic

• Trade-off space in which
• Project plans can be
• Modified

Cost Schedule

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Development of Work Breakdown Structures

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 Work Breakdown Structure WBS (how)
1.0

Deliverables
1.2 1.3 1.4 1.5

Work Packages
1.2.1 1.3.1 1.4.1 1.5.1

1.2.2 1.3.2 1.4.2 1.5.2

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Work packages should be easily aligned to contractors if being used, this works with the packaging breakdown structure
Projects are only viable, when?
• Projects are aligned with strategy of the organisation
• Projects no longer aligned can be cancelled, e.g. no longer Value for
Money
• 3P structure (Project, Program and Portfolio)
• Risk versus Reward

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 Host Organisation

Portfolio

Standalone
Programme within Portfolio Programme

Project within
Programme Project within Standalone
Portfolio Project

Source: APM 39
How do projects help to deliver an
organisation's strategy?

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A project is driven by strategy

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Strategy
• Strategy is a long-term view of the organisation
• Strategy is developed through senior managers interacting with corporate
level governance in order to develop an overall strategy for the
organisation
• Strategy is delivered through the optimal portfolio of projects and
programs
• There is no point in doing projects if they are not aligned with company
strategy
• An organisation manages a portfolio of projects and programs
• Projects are selected from a range of possible project ideas
using structured decision-making method including financial and non-
financial factors

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Strategy development process
• The strategy development process consists of the questions: "where
am I?", "what should I do?", "how should I do it?" And an overall
"why?" At the centre. This translates into an analysis, decision,
implementation with Mission / Vision /Values at the centre
• Corporate strategy is about which sectors and business units should
be decided upon, and competitive strategy is about what products to
compete with in essence, if you were to break strategy down further

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Portfolio of Projects Selection Example
Project Name Profitability Consistency Strategic Level of Risk Level of Resource
Innovation Intensive
Develop
software
upgrade
product
R&D into data
analytics
coding
Marketing
push in new
country
Others…..

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Investment Appraisal
• Economic including Net Present Value, Internal Rate of Return, Return
On Investment
• Intangible benefits which might be measured by Key Performance
Indicators
• Larger market share, difficult for competitors to enter market,
develop enabler platform, develop core technology, reduce
dependency on suppliers, government regulation prevention (Larson
and Grey)
• Cost Benefit Analysis
• Identification of main deliverables

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