Project Management How Does Resource

Project Management

How does resource scheduling reduce flexibility in managing projects?

Optimizing project resources is required for accomplishing project tasks, and while this is often an iterative task, the challenge of managing a project while optimizing, or controlling for, resource scheduling is one of the most difficult tasks of project management. The use of computer software programs including Microsoft Project includes optimization routines and algorithms to calculate how best to schedule all resources, including people, assets, and time itself relative to tasks so that a critical path is calculated. Optimizing the use of resources in accomplishing each task on the critical path takes many iterations in project plans, both when they are being calculated in computer software applications, and also manually. That's because resources assigned at the beginning of a project change, either becoming more available, or being constrained by projects they are shared on. To make this discussion less theoretical and more practical, consider the demands on Apple Computers' Design Engineering Teams when the Apple iPhone was under development in addition to future product designs of the Apple iPod. Design engineering in Apple would be required to participate and contribute heavily to both projects, with the iPhone launch on June 29th being a major event for both the company's reputation for innovation, erasing the errors of missing launch dates on laptops, operating systems, and even iPods, and the projected impact on the company's stock price. In short, iPhone was the critical path, and iPod sales are responsible for over 50% of total Apple revenues when iTunes sales are included. The resource scheduling of Apple Design Engineering then is clear: the iPhone launch date and critical path cannot be compromised; it is the most visible product launch in 2007 across all industries. The exposure is too great to miss the launch date. Apple decided to double down design resources on the iPhone and make the launch date, pushing back iPod future generation product introductions, yet no doubt being quiet about this decision to industry and financial analysts. In short, the resource scheduling conflicts Apple faced with the development and launch of the iPhone show in very timely terms what the challenges are in managing the most critical of resources, their design engineers. The reduction in flexibility of resource scheduling for the most critical of resources, design expertise in Apples' case, shows the tradeoffs that must be made to accomplish critical strategic objectives.

Resource scheduling also applies to the management of the supply chain for iPhone components as well. In as complex of a project as the development of the iPhone, coordination with suppliers for custom components including the glass front-plate for example, would force resource scheduling far down the Apple supply chain. The lead times for these highly customized components has a major impact on the first prototypes being built, initial production runs of the iPhone being completed, and the development of risk management plans for managing suppliers' resource scheduling conflicts internally.

Identify five indirect costs you might find on a moderately complex project. Why are these costs classified as indirect?

By definition, indirect costs are those costs not directly attributable to a given project, yet are necessary for supporting the completion of all projects. Indirect costs are, in other words, indirect expenses that are necessary for supporting all projects. Five examples of indirect costs for a moderately complex project include direct supervision, incidental tools and equipment, contractors' fees, insurance, and taxes. All of these costs are necessary for projects to be completed; all are critical for a project to synchronize their efforts together and also alleviate potential risks (in the case of insurance) and ensure efforts are not impeded by state or federal governments (the payment of taxes). In short, all of these costs are necessary for creating the necessary stable framework for individual projects to be completed.

What does the exchange model of influence suggest you do to build cooperative relationships to complete a project?

Built on the concept of reciprocity, the exchange model of influence specifically says that providing critical and needed resources for other project managers, and assisting them in attaining their project objectives in exchange for future resources and services is a sustainable and consistent strategy. Theorists often refer to the providing of resources to other project managers in exchange for potential support in the future as trading in currencies. Currencies can include inspirational currency, task-related currency, personal-related currencies, and position-related currencies. All of these currencies have specific strategies in their exchange, delivery, and value given a specific series of challenges that any given company faces in their efforts to complete projects. In the case of Apple Computer for example and the need for gaining access to Design Engineers for the iPhone, the use of task-related currency would be very high, as the iPod development and launch teams would need assistance in completing their projects as well. Conversely, the inspiration-related currency of being involved with the iPhone development had significant status within engineering and marketing departments inside Apple given the magnitude of the product launch. Experienced project managers soon realize how to align their currencies given to other project managers in exchange for the type and amount of currency they themselves will need in return. Planned reciprocity is the goal, and the exchange model of influence is prevalent in those organizations that are growing rapidly, have many projects underway, and have a level of trust between project managers that reciprocity will be fulfilled. It is important for project managers to actually think of all these currencies as crediting debit and credit account balances with the other project managers in the organization. It is critical for each project manager to have an idea of what their own balances are, either positive or negative, with each project manager, and the status of their exchange model of influence with key other project managers. In general the best strategy is to seek to have a debit balance with each project manager by being the first project manager to offer support and assistance in return for support in a future project.

What is difference between functional and dysfunctional conflict on a project?

Functional conflicts are often encouraged on projects as they stimulate higher levels of creativity and collaboration. Examples of functional conflicts in projects include the sharing of different points-of-view, debating and looking for resolution of two sides of an issue, playing the "devils' advocate" to check the strength of specific assumptions and forecasts, and working to show mutual respect and the ability to synthesize different views on projects to fuel the completing of the project. Functional conflicts are commonplace in high tech product development cross-functional teams, where engineering often has very specific opinions on the functionality of the product being produced, including the uses by customers and the need for managing trade-offs in product designs. In the case of Apple, engineering and marketing had to work together very closely to define the ideal feature set for the new convergence device, all the way down to the electronics for using the actual phone to viewing videos on the device. As Apple is a culture known for its passion, there must have been much discussion of feature sets, user functionality, and even the size and weight of the device, all resolved through functional conflict. Dysfunctional conflict on the other hand breeds negative tension between all team members, often degenerates into personality clashes and personal attacks, often leading to isolation of team members and groups, which slows down a projects; progress significantly. The other aspect of dysfunctional conflict is that it often significantly reduces the ability of project teams to band together again and trust one another, often key members of a project team will need to be replaced for the chemistry of cross-functional teams to become healthy again. It is imperative that a project manager step in quickly and re-define the teams' approaches to managing conflict to alleviate dysfunctional conflict before it ruins a project in progress. To re-define a cross functional team in the middle of a development cycle, project managers need to seek out recommendations from functional leads in the team for contributors who have worked well with others in the team today. It is quite common for high-visibility; highly stressful projects to often have personality conflicts degenerate into dysfunctional conflicts as a result of the extreme stress of trying to get a major new product launched. It is critical for the project manager to spend much time with each cross-functional team member to stay aware of the interpersonal conflicts that could degenerate into dysfunctional conflict. Experienced project managers often have a series of contributors in mind, thinking that if the conflicts between marketing and engineering for example on product features gets too heated or personal, that team contributors can be shuffled in to the team when the conflicts become too disruptive and turn dysfunctional. The bottom line is that for many projects of highly complex nature with a high level of visibility and stress associated with them, the greater the potential exists for dysfunctional conflict to arise.

What does the acronym BATNA refer to, and why is it important to being a successful negotiator?

The term BATNA refers to the concept in negotiation theory of the best alternative to a negotiated agreement being taken in the event an agreement is not agreed on. BATNA specifically defines the resistance point that any party in the negotiation in a party decide to leave the negotiation and pursue other options.

Having a BATNA-based strategy in place is an excellent negotiation strategy is it alleviates the need to accept aspects of a deal that is not acceptable to one side or the other of a negotiation. To make this more concrete, consider the case of a person negotiating to buy a used car from a friend. From Kelly Blue Book and other secondary sources of car valuations, the friends' care is worth $5,000. The buyer decides that given the wear and tear on the car, and knowledge of the current drivers' driving habits, the car is actually worth $4,000. BATNA would then be the $4,000 that the buyer would specifically have in mind when negotiating. If the buyer did not get the car for $4,000 there would be an impasse in negotiations. It is critical for any negotiator to have a BATNA in mind before ever beginning a negotiation so there is a limit to what they will pay for the good, service or resource.

Assume that you have the following decision making options:(1) make the decision on your own with available information, (2) consult others before making a decision, and (3) call a meeting and reach a consensus, seeking to arrive at a final decision everyone can agree on. Which approach would you use to make the following decision and why?

You are the project leader for Casino Night on campus, a charitable event organized by your group to raise money for the homeless. The event was a big success, garnering a net profit of $3,500. Before the event your team researched nearby organizations that support the homeless and to whom the money could be given. You narrowed the choices to the "Chunk of Coal House" and "St. Mary's Soup Kitchen." Eventually your group decided that the funds be given to Chunk of Coal. You are about to write a check to its director when you read in the local newspaper that the Chunk of Coal House has terminated operations. What should you do with the money?

First and foremost there is the ethical consideration if the Casino Night was promoted expressly to support the Chunk of Coal House, and as a result those students who were motivated to contribute the $3,500 were thinking they were helping this charity specifically. Clearly the director of Chunk of Coal, if not transparent about the termination of operations, needs to meet with the entire team and explain what is going on with the philanthropic organization, No other option is really available for this first step of decision making. A team member must be called to understand why the local papers are reporting operations are ceasing yet no word came from the director. Ethics need to be the primary concern on this first issue.