UNCERTAINTY AND PROJECT MANAGEMENT: BEYOND THE CRITICAL PATH MENTALITY
Arnoud De Meyer1), Christoph H. Loch2), Michael T. Pich3)
1) Professor of Technology Management, INSEAD (arnoud.de.meyer@insead.edu.sg)
2) Associate Professor of Technology Management, INSEAD (christoph.loch@insead.fr)
3) Assistant Professor of Technology Management, INSEAD (michael.pich@insead.edu.sg)
Keywords: project management, uncertainty, project profiles
Abstract
Project management is often identified with network planning techniques such as PERT, Critical Path Methods, Gantt Charts, etc. These techniques help us to cope with the management of complexity in a project. But projects are often confronted with a high level of
…show more content…
The final twenty percent is driving the site and keeping track of what is really happening out there. The Gantt chart is more a reflection of what happened last week, and what someone hopes will happen next week. … The problem is that every play we run is an option play (and the Gantt chart fails to reflect that).”
This reaction is typical for many of the project managers with whom we interacted. They don’t find the existing formal planning techniques very useful – the critical path method (CPM, PERT) and a plethora of heuristics, algorithms and concepts elaborating it. They dutifully draw the critical path, refer to it for formal performance review meetings, but often pay more attention to other factors. This may, of course, not always be the case: sometimes the Gantt chart is indeed the bible by which the project is managed. The problem faced by project managers is recognizing which approach is appropriate for the particular project at hand. Should they strictly enforce the discipline inherent in critical path thinking or should they adopt a more ‘contingent’ style of management, utilizing a set of tools and techniques better suited to the particular characteristics of the project?
There are few guides to inform the project manager in this important decision. Managers are left to their intuition as to which methods and style of management to choose. The pressure to adopt the discipline of
staff, management, and goals are in place to include them in the grid. Future plans must
This is to ensure that the necessary raw materials and physical resources are available at each stage, and that the workforce on site has the right skills for the scheduled work. The project management team will need to produce a series of planning documents that can be accessed throughout the project. Each member of the project management team must know their role and responsibilities, including which sections of the workforce they will be directly managing.
The paper is divided into three sections, the first of which will establish a timeline of events. This project background will serve as a case study for the analysis in the following section that will be structured such that each of the previously mentioned facets will be independently analyzed and contrasted with project management principles. Finally the paper will conclude with a summary of the analysis and recommendations based on
With the exceptional growth in technology, the present day projects are often large and complex involving a significant risk. So, a Project Management Methodology enables the delivery organization to handle these projects comprehensively, systematically and in an integrated manner, which results in strategic, tactical and operational benefits.
There are many types of project management tools. From proprietary licensed tools such as Smartsheet for Salesforce, Oracle Project Planning and Control and Microsoft Project and Portfolio Management; to theoretical project management tools such as Program Evaluation and Review Technique (PERT), Gantt charts and Critical Path Method (CPM). All of these tools aim to streamline the planning,
This project charter is planned to help O’Donnell & O’Donnell LLP who will lead the project management team take place the parade smoothly. This parade for welcoming home troops will be organized in Colorado Spring which has a long history of military. This project charter’s goal is making sure project management team and sponsors understand all details and tasks of this parade and getting an agreement between these two parties. Some important tasks can be directed with the project charter. For examples, raising fund, arranging thousands of soldiers and planning a lunch
Project Management Institute. (2000). _A Guide to the Project Management Body of Knowledge (4th ed.)._
Executive Summary Project management is the science of planning, organizing, executing, and managing the resources needed to achieve a specific goal. Effective project managers (PM) strategically facilitate the entire project management process to ensure the project’s success. To do this the PM must adequately meet the specific requirements (i.e., time, scope, quality, and cost) set forth by the project and its stakeholders. It is theorized that PM must possess a set of core competencies in order to successfully manage a project. Those competencies are development of project management knowledge areas, application of appropriate project management tools and techniques, understanding of the project
The process of Project Management is very detailed – there are multiple phases to properly manage the project (e.g., project plan, schedule, communication plan, risk management plan, and
As the world is chaotic (Djavanshir and Khorramshahgol, 2006) it is impossible to always predict the future accurately. Teller at al (2012) describes project management as balancing the “iron triangle”, where changes to any one of the planned costs, quality or scope will change the other elements. Risk management allows contingency to be put into project plans, (APM, 2012) minimising negative effects and maximising the benefits of uncertainty.
Larson, E.W. and Gray, C.F. (2012, p. 214). Project Management: The Managerial Process, 5th Ed. McGraw-Hill Learning Solutions. Boston, MA.
While projects can be similar in some instances, no two projects are ever the same. For this reason, management of projects requires the application of tools and techniques to meet the goals of the temporary endeavor. Project managers apply these tools and techniques to determine what is required for project delivery such as the list of activities to completed, the time required to complete the activities, resources needed and the various risks associated with the deliverable and efforts. A multitude of tools and techniques are employed by the project manager based on the need of the effort to organize, identify and communicate the various aspects of the project. While in contrast, the repetitive nature of operations activities
Several adaptations to the traditional approaches like agile, interactive, phased, extreme, etc have been made but each will be expected to meet the requirements of the project objectives, timeline, resources, and deliveries of the stakeholders. Other industry standard certifications like ISO9000 and regulations like the Sarbanes-Oxley have also influenced methodologies and processes used by several organisations (Kerzner, 2003). Generally, managing projects should involved five major process which include the project initiation, planning, execution, monitoring and controlling, and then project closing. See Fig. 2 below.
i. Speed has become a competitive advantage; more and more organizations are relying on cross-functional project teams to get new products and services to the market as quickly as possible.
In order to achieve their business objective, project management and the used methodology are key factor which will be responsible for the success or failure of this project.