Lecture 1 & 2: Project & Project Management, Strategic Contexts of Projects

Question 1

What are the 4 characteristics defining a project, ending off with its limitations?

Answer 1

1. Unique; never done before, one of its kind
2. Non-routine; non-repetitive work
3. Innovative
4. One-time effort; do it once and for all

Limited by time, budget resources and performance specification, designed to meet customer needs.

Question 2

What are the 5 major characteristics of a project

Answer 2

1) Established Objective
2) Defined Lifespan
3) Several Departments
4) Never done before
5) Specific time, cost and performance requirements

Question 3

Distinguish Project from operations

Answer 3

1) Duration & 2) Types of efforts
Projects: Unique, one-time endeavours
Operations: Ongoing, repetitive tasks

Question 4

What are some examples of maritime projects?

Answer 4

1. Container shipping: Develop a new Europe-Asia service route
2. Market Intelligence:
   Develop new methods to predict future freight rates
3. Maritime regulator:
   Study future competency requirements of maritime workforce.
4. Shipyard:
   Develop AI system for dry dock inspection
5. Marine tech
   : Research on alternative ship fuel, e.g biofuel

Question 5

Which one is more important, projects or operations?

Answer 5

1) Projects are dynamic, relevant and competitive in the long run, because you are constantly changing the product to meet customer needs.

2) Operations are static, without projects, with day-to day operations of a company only, company will become obsolette and lose its competitiveness in the LR.

Conclusion: Equally important; Operations still important for day to day , but project tackles future needs.

Question 6

Why is project management important? Hint: 6 factors

Answer 6

Crucial to Both Organisations & Individuals.

Organisations
1. Sustainable, long term economic growth

2. Drives innovation in businesses
3. Develops new products and services
4. Improves productivity & quality of work

Individuals
5. Valuable, Universal Career Skill

6. Leads to promotion and improves employability

Question 7

What could happen to a
company that does not implement or invest in projects? ( Essentially consequences of not doing projects)

Answer 7

1. Company will remain stagnant.(i.e no changes or improvements).
2. Its products and services, operations and employees’ skills will lose their competitiveness
3. Easily overtaken by competitors overtime.
4. Fewer customers will purchase the company’s products and services.
5. Company will lose market shares, earn less profits, experience losses, leading to its eventual closure.

Question 8

Why is it important for project managers to understand the strategy of a company?

Answer 8

1. Making appropriate decisions and adjustments

• A project manager should modify the design of a product or delay a project according to strategic concerns
• Only can be done by environmental scanning

2. They can be effective advocates:
   They have to
   *Demonstrate to senior management how their project contributes to the firm’s mission in order to garner their continue support

*Explain to stakeholders why certain project objectives and priorities are critical in order to secure buy-in on trade-off decisions.

*Explain why the project is important to motivate and empower the project team.

Question 9

What is the linkage between project management and strategic management

Answer 9

→ Both are highly Dependent ( Project Management Downstream→ Strategic Management Upstream)

→ Project is the means of implementing strategy, and strategic capability supporting the design and execution of strategies for the organisation’s future.
( Strategy→ Goals→ Vision)

→ Effective strategic management depends on effective project management

→ Positive Project Outcomes lead to positive strategic(non-financial outcomes: more market share, stronger technological capability than other competitors) and financial (Higher ROI, profits) outcomes(success of company) for organisations

Question 10

What are the four key considerations in a project?

Answer 10

1. Time
2. Cost
3. Technical Performance (Quality)
4. Strategic fit

Question 11

1. What does achieving a strategic fit do?

Answer 11

1. involves ensuring that the project supports the formulation and execution of organization strategies.
2. Firms can evaluate the extent to which the completion of the project contributes to the firm’s strategy and objectives

Question 12

What are the 7 questions determining strategic fit?

Answer 12

Questions to determine strategic fit in market objectives:

1. Will there be a “customer” for the product or process coming out of the project work?
2. Will project results provide value(willingness to pay) to customers?
3. Will project results survive against the competition?
4. Will the project support the current priorities of the organisation?

Questions on Risk

5. Can the organisation handle risks or uncertainties that are likely associated with the project?

6.What is the probability that we will:
Finish project on time?
Stay within our budget?
Meet all our technical performance(quality) objectives?

Questions on Financial objectives

7. Will the project ultimately lead to a satisfactory return on investment(ROI)?

Question 13

What does being an effective project advocate do?

Answer 13

1. Demonstrate to senior management how their project contributes to the firm’s mission to garner their continued support. ( also highlight the need to terminate projects if no longer support the firm’s mission)
2. Explain to stakeholders(customers) why certain project objectives and priorities are critical to secure buy-in on trade-off decisions( Between time, quality and cost)
3. E.g. in a good economy, what is the priority in launching a good product? Quickly launch(time) as customer willing to pay, in recession focus on cost.
4. Explain why the project is important to motivate and empower the project team.