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Effective Project Management

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Effective Project Management.

What is a Project ?

A project may be large or small, simple or complex but all projects share three common attributes:-

• Specific Outcomes – the project is set up to deliver some specific results or outputs.

• Defined Start & End dates – The project starts and finishes on pre-defined dates.

• Budget – the project has a pre-defined budget which it should not exceed

What is the Project Management process.

There are a multitude of definitions of the project management process but all of them share the attributes shown below:-

PMprocess

The Role of the Project Manager.

The role of the project manager is a challenging one. Often he or she will be coordinating the activities of technical highly skilled people and liaising with internal and external parties all critical to project delivery. Project Management is a highly skilled professional role and the Project Manager will normally need several years experience in order to be successful.

The role involves the key tasks of planning, organizing and controlling. In complex projects planning project tasks often involves the use of software programs such as Microsoft Project which enables the Project Manager to schedule hundreds of tasks and manipulate their interdependencies in order to reduce the overall timescale of the project.

Organizing involves dealing with people within the immediate project team as well as third parties internal and external to the wider organization.

Controlling involves monitoring and measuring outputs and exerting influence to achieve the desired outcomes.

In order to be effective the Project Manager needs information, communication and commitment.

chris@projectsguru.co.uk

www.projectsguru.co.uk

Dubai gives the world the finger………….

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Burj2Dubai has officially unveiled  “The Burj” –  now the worlds tallest building at 828m & visible from over 60 miles away !

It cost a staggering $1.5 Billion to construct over the last 5 years using thousands of migrant workers.

Indeed the building was originally to be called “Burj Dubai” but has now been named “Burj Khalifa” in honour of the ruler of Adu Dhabi who recently bailed out the troubled emirate to the tune of several billion dollars.

Many will see this building as a great feat of engineering, a wonder of the modern world, a tremendous edifice and monument to Capitalism, the latest and greatest in a long line of stupendous architectural magnificences.

Others may see it as the biggest ‘white elephant’ ever built, a monument to excess, an obscene symbol of wealth built by the labour of the poor (mainly Indian & Pakistani labourers paid a few dollars per day) slaves in all but name.

A fitting monument to the “Noughties” decade of excess which imploded in the Worlds greatest recession.

The greatest  example of construction built on sub-prime mortgage the world has ever see.

Dubais magnificent finger rising from the plains and screaming “Up Yours World !”

Whichever way you view it you certainly can’t ignore  it.

chris@projectsguru.co.uk

www.projectsguru.co.uk

Chinese elves make manufacturing cheaper…

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father-christmas In a press statement released today at 21.oo GMT Father Christmas  announced that, from today onwards, all toys will be manufactured by Chinese elves due to the increasing costs of employing elves at the North Pole. This has been exacerbated due to the effects of global warming and the shrinking ice cap making Real estate in the Northern Latitudes increasingly expensive.

Santa denied that product quality would be effected stating that toys will continue to be designed by Northern elves. Only the manufacturing operation itself is being subcontracted to China.

No member of the Chinese Goverment was available for comment and Santa catagorically stated “…this has absolutely nothing to do with the recent Copenhagen event & ,despite rumours to the contrary, I was not a participant”

Sad for Saab…….

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saab93 Recent news that GM has failed to find a buyer for Saab leading to the imminent demise of this once great automotive manufacturer will sadden those of us who once owned one of these iconic vehicles.

The Swedish manufacturer has a tremendous tradition of innovation. They were the leaders in Turbo development which was incorporated into a range of models in the 1960’s.

The Duck-Billed shape of the 9-3 and earlier 900 series made their looks distinctive and original.  The Saab cockpit reflected the brand’s Aero heritage with its wrap around style and distinctive dash. Saab cars had headlight wipers long before anyone else and everyone who has driven a 9-3 or a 900 came to love the ignition being next to the handbrake (rather than next to the steering wheel) meaning the car had to be left in reverse gear before the keys could be removed – proving an excellent mechanical theft deterrent.

Let’s hope someone comes in at the last moment to rescue this iconic and innovative automotive brand.

The Blame Game……

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sugar It is common in Organizations to look for someone to blame when things go wrong. Some cultures are more prone to this behaviour than others but the temptaion to blame a member of the team when things go awry should be strongly resisted by the Project Manager.

Any individual criticism should be done on a face to face basis in private. The public apportioning of blame will greatly weaken Team morale and spirit and will often reflect back on the Project Manager.

Even if individual team members criticise the Project Manager this should be dealt with on a one to one basis avoiding public retaliation.

Successful Project Managers generate respect by treating Team Members as they would be treated themselves.

chris@projectsguru.co.uk

Shifting sands of Globalization…….

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dubai The recent events in Dubai, where the state owned fund “Dubai World” announced it needed an additional 6 months to repay some of its outstanding debt, caused shockwaves around the World echoing the problems of Lehmans 12 months ago. The impact was felt on stock exchanges from Hong Kong to Wall Street.

These issues illustrate just one of the impacts of increasing globalization. Undoubtedly there are many, many benefits – the ability to Outsource manufacture to cheaper locations brings down the price of consumer goods. Products once deemed exotic are readily and cheaply available in our Supermarkets.  Clothing is cheaper than ever before. International communication has allowed relationships to develop over all of the continents breaking down cultural barriers and suspicions.

However, like anything else, there are downsides.

Sovereign Wealth Funds, controlled by State Oligarchs, have immense wealth and power at their disposal. Their decisions made in conference rooms in Beijing or Dubai can have devestating and massive impacts on jobs and prosperity in the U.K or elsewhere in the globe. These insitutions are not democratic in nature and are not answerable to any electorate.

How we in the “liberal” democratic World control and resist their impact remains one of our greatest challenges.

chris@projectsguru.co.uk

Dad, why don’t we make anything anymore…

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ManufIts common knowledge in the U.K that manufacturing has declined over several years but the attached graphic illustrates just how serious that decline is compared to other leading nations. The situation after the credit crunch is likely to paint an even grimmer picture.

But why should anyone care ?   Does it reallly matter if we are making things or providing services instead ?

The fact that Japan, Germany, France and most leading nations are emerging from recession before the U.K may give some indication of that importance.

Manufacturing provides highly skilled jobs which are well paid. This leads to more purchasing power for the economy as a whole.

Also, for every job in manufacturing another 10 may be created in support functions and in the supply chain.

But, can we still afford to manufacture in the U.K ?

Anyone who has done a Business Plan for an engineering project should have realised that, when considering modern manufacturing equipment, direct labour cost is virually insignificant. What has a massive effect is the COST OF CAPITAL and therein lies the biggest clue to our problems.

If we want to prosper in the U.K with a fare distribution of wealth and an effective social care structure we need a vibrant, mixed economy of which manufacturing is a major key component.

This can only happen if Goverment has an effective manufacturing strategy with a good supply of reasonably priced Capital investment.

That is the challenge for Government of whatever persuassion.

chris@amberhill.biz

Outsourcing is not an easy answer…

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SPA032

There is little doubt that outsourcing, when done correctly, can save money and inprove service but there are a number of things you need to be aware of when considering outsourcing:-

1) Product Quality – there are many in-house practices which are not documented which contribute to product quality. If  Product manufacture is outsourced these checks and balances will no longer be present and product quality will be adversely affected. It simply isn’t possible to document everything.

2) Hidden Cost – whereas unit cost will be cheaper (otherwise why do it) the overhead cost of managing and monitoring the Outsource supplier may be greater than anticipated, this needs to be closely monitored and managed.

3) Loss of I.P.R – It doesn’t matter what legal documents you sign some of your Intellectual property will be lost to the Outsource supplier and even end up in the hands of your competitors. You need to be aware of this.

4) Project Timescales –  Early Projects will suffer unplanned delays, this is an inevitable part of the learning curve.

5) Cultural Differences – these should not be underestimated and, if not clearly understood, will lead to confusion and misunderstanding.

Managing Ousource Projects requires experience and skill. You should seriously consider engaging an Outsourcing expert particularly in the early stages of the Project.

chris@amberhill.biz

A light at the end of the tunnel….

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…but it turns out to be a trains headlight !!!

projectsTodays U.K  GDP figures for July to September turned out to be grim news, with growth of 0.2% widely expected the actual figure was MINUS 0.4% !!! and now we are officially in the longest recession since records began.

So what can your company do to ensure survival:-

1) Review your costs on a regular basis – regular monitoring keeps everyone on their toes.

2) Introduce a regime whereby ALL purchase requisitions have to be approved by a Director. –  Its amazing how this can reduce unnecessary expenditure.

3) Get your costs scrutinized by an extenal body, its surprising what a fresh pair of eyes can see and the savings can far outweigh any consultancy fee.

4) If you are not already doing so consider outsourcing some of your key activities – but make sure you get professional outsourcing advice. The savings can be tremendous and preserve jobs in the long term.

5) If you need extra resource consider hiring interims or contractors, their contribution can have a massive impact for relatively litle cost.

Hopefully the Q4 data will be positive and we can all look forward to several years growth and prosperity.

Cost cutting is not enough…….

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AMBERHILL-LOGO-THUMBThe response of most companies to the current recession has been a round of savage cost cutting in the form of job loses, wage freezes, caps on pay etc etc

Of course this is understandable given the size of the slump following the global financial crisis but any company which believes that cost cutting alone will enable them to survive in the long term is sadly misguided.

The only way to grow is by introducing innovative products and services with real customer demand that beat the competition.

Companies that rely on cost cutting alone and who hope to deliver the same old same old will whither and die. The insolvency graveyard is full of companies which lacked the vision to change and, like a dinosaur which could not adapt to changing times, ultimately ceased to exist.

Some of the best examples of innovation can be seen in the Great Depression of the 1930’s. DuPont invested heavily in Research & Development. By the late 1930’s 40% of its sales were from products that were less than a decade old, including Nylon & synthetic rubber.

Procter & Gamble invested so heavily in Radio advertising it invented a new art form – The Soap Opera.

In the current resession Asda is building 14 new stores & hiring 7000 new workers. PepsiCo has taken direct control of two of its bottling plants at a cost of $6 billion.

Despite seeing it’s revenues fall by 23% in Q4 2008 compared to Q4 2007 p4Intel is continuing to invest heavily in innovation.

Cisco is buying up start-ups left right and centre.

P&G is undergoing its biggest expansion is 170 years opening 19 new factories world wide.

Innovation is the only answer for long term growth.

chris@amberhill.biz