Project Management Methodology - Case Study Example

Project Management Name: Lecturer: Course: Date: Summary This paper presents an overview of PRINCE2 project management methodology. It discusses that the PRINCE2 is a process-driven methodology that outlines seven processes. These include Project Startup (SU), Initiation of the Project (IP), Directing the project (DP), Project Control Stage (CS), Management of Stage Boundaries (SB), Management of product delivery (MP) and Project Closure (PC). In comparing PRINCE2 and PMBOK, it is discussed that the PMBOK is a knowledge-based approach while PRINCE is process-based. This assessment argues that PMBOK is best approach since it teaches the subject content of knowledge areas despite not being so effective in regards to providing better guidance that should be used in running a project. In addition, it appears designed for a range of project situations and clients. Its perspective is therefore more flexible and inclusive. Additionally, PMBOK can be undertaken across all levels within the organisation. In the third section, Boeing 787 project failed due to poor project management. The project was characterised by poor planning. It also had problems with executive management support. Further, there was poor work coordination. The project also lacked clear statement of requirements. Lastly, it lacked early and ongoing risk analysis and management. Table of Contents Summary 2 Table of Contents 3 Part 1 4 Overview of the PRINCe2 Project management methodology 4 Outline 4 Project Start-up (SU) 4 Initiation of the Project (IP) 5 Directing the project (DP) 5 Project Control Stage (CS) 6 Management of Stage Boundaries (SB) 6 Management of product delivery (MP) 7 Project Closure (PC) 7 Part 2 8 Comparison of PRINCE2 and PMBOK 8 Best approach 9 Analysis of an Engineering Management Project 10 Business Case 10 Failures 11 Some Successes 12 Key Lessons 12 Commentary 13 References 13 Part 1 Overview of the PRINCe2 Project management methodology Outline PRINCE2 (Project in Controlled Environments) is a method of project management with a design or framework that covers a range of activities and disciplines within a project. The focus of this methodology is on business case. It describes the underlying principles and business justifications for a project. The business case covers all processes in project management, from the project set-up to its ultimate closure (Crown 2002). The process-driven methodology is based on seven key principles, namely continued justification of business, having defined roles and responsibilities, learning from experiences, management through stages, managing through exception, emphasis on products and customising the processes to conform to project environment (Crown 2002). Additionally, the seven underlying themes in the methodology include business case, plans, change, organisation, quality, progress and risk. Overall, the seven principles and themes materialise within the seven processes defined in the methodology. Project Start-up (SU) PRINCE2 suggests that in the first stage, the objectives for starting the project are defined. Discussions on whether the project is worthwhile or viable are then held. Responsibilities are also defined and appointments done for the project board and team leaders. Additionally, the approach the project should undertake is selected even as planning for the next stage takes place. After this is ended, the selected project managers and team leaders, or the project board, authorise the next stage of the project – project initiation (Crown 2002). Essentially, the project management team reflects the interests of all parties involved in the project, such as the supplier interests, users and businesses. Consideration is given to the entire activities and processes required in undertaking the project. Together, those selected or elected describe the needs of the project and authorise that the project should proceed. They afterwards determine the needs of the project and the process through which the project is to be executed. Overall, the major activities at this stage include creating project leaders and the board, appointing the management team, creating a project brief, determining the project approach and planning for project initiation. Initiation of the Project (IP) The second stage complements the start-up process. At this stage, the project brief is beefed up to make it capable of forming a business case. Additionally, an approach is undertaken and the standards on which to determine quality decided. Next, project files are created that present the overall plan of the project (Crown 2002). Planning for the next stage is also carried out. The plan is afterwards forwarded to the project board for authorisation. In all, the main activities at this stage include planning on quality, putting plans for the project, improving the business case and refining the risks, creating project files and assembly of documents for initiating the project. Directing the project (DP) This phase defines how the project board, which is made up of the project sponsor and the executives, should carry out the project control. At this stage, the project board may permit an initiation stage as well as authorise any other sub-project. It also defines how the project board should permit a stage plan, such as any plan that substitutes the current stage plan because of any unforeseen state of affairs (Crown 2002). Also covered include the ways in which the project board should handle unplanned project direction and how project closure should be handled. Overall, the key processes at this stage include authorisation of the project, authorisation of initiation, issuing ad hoc direction and handling project closure. Project Control Stage (CS) PRINCE2 suggests that at this stage, the project has to be divided into stages. The sub-process further defines how each stage should be handled. Importantly, it sets out the ways in which work should be handled as well as ways in which progress should be monitored. It further highlights on how progress is reported to the project board as well as criteria for assessing and capturing project issues are undertaken (Crown 2002). It further sets out the ways in which some project issues need to be intensified. In all, the main project activities include permitting work packages, how progress is measured and captured, how the status of the stage is reviewed and reported to the project board, how to take corrective actions as well as receive finished work packages. Management of Stage Boundaries (SB) Prince2 suggests that this stage should define what actions should be taken at the end of the stage. Planning for the next stage is also done. The business case is also amended based on risk register. The process further covers activities to be undertaken for any stage that are outside their tolerance levels. Lastly, the process defines how reports for the end of stage should be carried out (Crown 2002). In sum, the main processes at this stage include planning, updating of the project plan, revising the business case, revising the risk register, how to report the stage-end and generating exception plan. Management of product delivery (MP) PRINCE2 suggests that this stage defines the rationale for controlling the correlation between the team manager and the project manager through placement of formal requirements once the project work is accepted and executed. The objective of this stage is to check that work on project allocated to a team is permitted and accepted. It also ensures that the team members and managers, as well as suppliers, have understood what should be generated as well as the efforts expected from them. Additional objectives include whether the planned project is delivered as expected and within the tolerance. Further, it also seeks to ensure that progress information is supplied to the project managers at the accepted frequency to see to it that expectations are managed. Overall, the main activities include acceptance of work package, implementing work package and delivering the work package. Project Closure (PC) This phase covers activities that should take place during the closing of the project. Prince2 suggests that the project should be de-commissioned formally and resources released and be allocated to other activities. Additionally, follow-on actions are defined and the entire project evaluated. Overall, the main processes include decommission of the project, evaluation of the project and identification of follow on actions. Part 2 Comparison of PRINCE2 and PMBOK Project Management Body of Knowledge (PMBOK) is part of project management that helps in developing project management. Both PMBOK and PRINCE2 represent best practices as well as serve to implement project management methodology. While PRINCE2 is a process-based approach, PMBOK is a knowledge-based approach. However, the main difference between the two is that PMBOK offers proven practices and information on the necessary fields (PMI 2000). Additionally, it requires the project manager to apply. On the other hand, PRINCE2 offers a range of steps that help project managers to follow. In which case, the two do have some similarities, including on the knowledge areas and components. The only difference is that PMBOK covers several common topics. Additionally, PRINCE2 offers a strong and easy-to-use methodology that can be used in project management. This is since, unlike PMBOK, PRINCE clarifies and adequately defines the objectives of the projects and the deliverables. PRINCE2 and PMBOK have dissimilar approaches in presenting their materials. In fact, they are designed for different purposes, which imply that they are not comparable directly. Although they take different approaches, their goals are to ensure improved success rate and project management (PMI 2000). From analysis of PMBOK and PRINCE2 manual, it is apparent that both methodologies possess a range of limitations in the areas of project initiation. A key advantage of PRINCE2 methodology is that it offers standardisation within the organisation. Its major disadvantage is that it is too restrictive to creativity in applying a range of methods to come up with a project in a different manner. Additionally, similar steps have to be followed. In considering the technical merits of PMBOK and PRINCE2, it is critical to first appreciate that while PRINCE2 is a methodology, PMBOK is framework. PMBOK consists of a collection of best practices and recommendations. It is also made up of tools and techniques essential for project management (PMI 2000). Conversely, PRINCE2 is a methodology with clear templates, steps and processes for carrying out project management. PMBOK is however more focused on skill development and in handling situations while PRINCE2 is more focused on project governance. Best approach This assessment argues that PMBOK is the best approach. First, this is since it teaches the subject content of knowledge areas despite not being so effective in regards to providing better guidance that should be used in running a project (PMI 2000). It is superior to lifecycle-based presentations such as PRINCE2, which is not effective in teaching subject area of knowledge areas. Additionally, while PRINCE2 is basically intended for a range of supplier or customer situations, PMBOK applies in many scenarios. Indeed, PRINCE2 seems to have been created basing on the premise that a project will be conducted for a single client (project sponsor) and a single supplier throughout its lifecycle (PMI 2000). The insinuation is that PRINCE2 is in the hands of the contractor rather than the sponsoring organisation. It therefore cannot cover favourably the circumstances of trade contracts or multiple prime contracts under the control of the owner or the sponsor of the project directly. On the other hand, PMBOK appears to be designed for a range of project situations and clients. Its perspective is therefore more flexible and inclusive. Indeed, in describing the project, PMBOK suggests that projects should be implemented with the view of attaining an organisation’s strategic plan. Additionally, PMBOK can be undertaken across all levels within the organisation (PMI 2000). In sum, PMBOK is the best approach. However, since it also has some underlying limitations, it is essential to use both approaches in project management. Analysis of an Engineering Management Project Business Case Boeing’s 787 Dreamliner was Boeing’s flagship project that was expected to offer the company huge financial returns. It was intended to be wholly made of composites instead of aluminium, to consume 20 percent less fuel as compared to its 767 equivalent, and to increase the profit margins (Moodley 2013). It was also intended to set the future trend for commercial air travels based on minimised fuel costs, significance of the rising demand for point-to-point direct flights in emerging markets such as China, to meet acceptable noise levels and to reduce the huge costs related to building carrier planes (Moodley 2013). Unfortunately, due to problems attributed to poor project management, the Boeing 787 did not attain the intended outcome as planned. Indeed, while it was intended to be delivered in 2008, string of delays characterised the launch that was put forward to 2011 and later to 2013 due to smoke in cabins, fires and fuel leaks. In a nutshell, the Boeing 787 Dreamliner project was a failure. Failures The project was characterised by poor planning. In regards to suppliers and outsourcing, there were a number of problems in the whole project planning process. The company had adopted a global concept to develop the 787 Dreamliner through outsourcing most components of the plane, outsourcing engineering, and production as well as using local and foreign suppliers. Unfortunately, the concept failed given the inability of the company’s subcontractors to undertake other engineering works that were complex and uncertain (Moodley 2013). Problems with executive management support. The senior managers failed to sufficiently take into account the implications of outsourcing on the project’s overall lifecycle and costs. Although outsourcing had the potential to eliminate costs, it introduced additional costs associated that were with coordinating the suppliers and integrating them to become a single whole. Poor work coordination. In regards to assembly approach, a new assembly method was tried on the Boeing 787 Dreamliner project where subcontractors had to integrate own subsystems as well as send the preassembled subsystems into one integration site ready for final assembly (Moodley 2013). However, the program experienced major delays that were caused by the subcontractors who were unable to meet their delivery targets because they lacked the experience in using subsystem design and integration. Other problems originated from problems associated with supply chain (Allworth 2013). The project lacked clear statement of requirements. In regards to organisation structure and communication, the 787 Dreamliner project comprised more than 700 external companies, which provided plane parts and components. However, the new model had poor coordination. Additionally, it was not supported by adequate documentation that specified and defined components. For instance, assembly parts sent to Boeing lacked proper assembly instructions (Moodley 2013). The project lacked early and ongoing risk analysis and management. Boeing had no clear strategies for risk management (Allworth 2013). Among the risks included the fact that the plane was designed to be exceptionally environmental friendly. The production of the aircraft from carbon-fibre-reinforced-plastic (CFRP) was a source of problems as it failed to meet safety and quality tests (Moodley 2013). Some Successes The project had clearly articulated goals. The Boeing 787 was intended to use electric power to control signals instead of mechanical components that were cumbersome (Allworth 2013). The project managers had described deliverable quality criteria from the start. The company knew that it could not get all the plane components from a single supplier. Arrangements were therefore made to hire several suppliers to design and manufacture electronic systems within the plane. This was to be a part of the project’s global networking system (Allworth 2013). Key Lessons Project managers should acknowledge that project do rarely goes as planned. During the planning process, it is crucial that a risk log and an action plan should be created for the risks that the project may face. The stakeholders, including the project sponsors, must be informed of the risk log. In case an unexpected event or risk occurs, the team should use the risk long along with the management plan to resolve the issue. This will bolster the project team’s confidence (Kutzavitch 2010). Poor or absence of user involvement in the project can cause failure even when the project is on budget. Having a clear statement of requirements and support from the executive management influences the progress and success of a project (Attarzadeh, I 2008). Open and coordinated communication system is a critical success factor for a project. Keeping open and flowing communication within the team, the entire contractors and the management is absolutely essential. The team should be informed of changes in the project as well as new components (Attarzadeh 2008). Project managers may face serious challenges due to inadequacy in the team or out-of-sync team. The project should always be assigned to the right people. Commentary Part 1 presents an overview of PRINCE2 project management methodology. It discusses that the PRINCE2 is a process-driven methodology that is based on seven key processes namely Project Startup (SU), Initiation of the Project (IP), Directing the project (DP), Project Control Stage (CS), Management of Stage Boundaries (SB), Management of product delivery (MP) and Project Closure (PC). Part 2 compares PRINCE2 and PMBOK. It is discussed that the PMBOK is a knowledge-based approach while PRINCE is process-based. It is argued that PMBOK is the best approach since it is designed for a range of project situations and clients. It is also more flexible and inclusive. Additionally, PMBOK can be undertaken across all levels within the organisation. Part 3 provides analysis of an Engineering Management Project. Boeing 787 Dreamliner project is selected. The Boeing 787 project failed due to poor project management. The project was characterised by poor planning. It also had problems with executive management support. Further, there was poor work coordination. The project also lacked clear statement of requirements. Lastly, it lacked early and ongoing risk analysis and management. References Allworth, J 2013, The 787's Problems Run Deeper Than Outsourcing, Harvard Business Review Attarzadeh, I 2008, Project Management Practices: The Criteria for Success or Failure," Communications of the IBIMA, Vol. 1, 234-241 Crown 2002, PRINCE2, The Stationery Office, London Kutzavitch, K 2010, Change Management Issues and Risk Mitigation Strategies for the Enterprise, Mastech, Pittsburgh Moodley, K 2013, Boeing's Dreamliner nightmare: PR fail or tech mess?, CNBC News, viewed 18 Feb 2014, http://www.cnbc.com/id/101178693 PMI 2000, A Guide to the Project Management Body of Knowledge, Project Management Institute, Pennsylvania Read More