Project Management

Attendance compulsory, but you can tell "I have important stuff" and go (not everyday)
Passing exercise - propose a project
estimate budget, profitability, market analysis etc...
group project
50% pts - 15-20 page doc discussing the project
25% pts - peer-to-peer evaluation (after kick-off meeting)

Last two classes - presentations (online?), 15/20 mins
Additional "project study" about chosen subject (list will be given, or something similar). 3-4 page long,

Classes before Christmas will be canceled

Project planning after kick-off

Project phases

Initiation phase

M0 - initiation phase

Planning

M1 - sub-component Proof-of-Concept

Execution

M2 - system PoC
M3 - first prototype
M4 - industrialization (check if safety requirements are met, quality testing [QT] etc.)
M5 - optimisation

Summary

Project example - matcha shop

Initiation

what's the motivation - knowing that matcha is popular, let's start a matcha business. this will generate profit and passive income.
goal - optimization of the purchasing price of different matcha and different add-ons, to increase reach highest margin without losing quality
cost & timeframe - $100k, 3 years
major risks - major becomes unpopular, legal issues, trade-ways getting cut-off

Planning

Top-to-bottom method - have the end goal, and find smaller and smaller components that will be required to reach that goal
Matcha

• Supplier
  • list of suppliers
    • market research
    • preparation of the list with specific dates
    • definition of the supplier properties
    • shorting the list to 100 best options
    • calling for quotation
  • Audit of selected suppliers
• Processing
• Quality testing
• Lab arrangement

FMEA analysis

Evaluating project state

Technology Readiness Level (TRL) - European categorization of defining 'readiness' of the project/research. Decided by European Readiness Council.

• TRL level 1 - purely theoretical level. Purpose is to push that research into TRL2/3
• TRL2/3
• TRL5/6
• TRL8/9 - final (wanted) levels

Estimation

Gantt Chart

Describes relationship between tasks. A crucial element of the project control process.
To construct a Gantt Chart:

• Determine duration of each task
• Determine relationship between tasks (WP3.3 might ned output from WP2.1 to be started?)
• Determine necessary resources (especially human resources)
• Determine Critical Path of the project

Estimation Techniques

Budget - estiation techniques

• Engineering technique
  The most time consuming. Each position in the budget is precisely analyzed. Sometimes called detailed estimating, experience in similar projects is needed
• Quotation
  Just ask a subcontractor or check price in the calculator

Communication

Questions to ask yourself before the presentation

• What is the presentation goal
• Who will be the recipient
• What is their knowledge
• What is their approach
• What about their (customer) expectations
• Difficulties
• Their work that has to be done

Presentation style

• What do they know about me
• What I tell them
• What will increase theri attention and what won't
• What will be presented before my presentation
• Can it be humorous
• What can be added to make it more attractive
• How I will end

Profitability analysis

Profitability

Money runs the world
In general, project needs to generate value
Value may be considered as:

• profit
• simplification procedures
  Project needs to be fueled with money
  So, how can we calculate profitability of the project?
  ex. - What is the profitability of building a road

Value of the money changes over time

There is a present value of the money and future value of the money

$FV$ - future value, $PV$ - present value
$n$ - number of periods
$r$ - discount rate

Discount rate

Annual Percentage Rate of Change - the cost of the money if we borrow it from a financial institution
Inflation - relationship

Loan - equal payments of not

Two types of payments:

• Payment stays the same, but the length may change due to inflation
• Payment changes with the inflation

Value of the project over time - NPV

Net Present Value
Difference between incodme and spending's
Takes into account actual value of the project
Take into account rediscount raate

Project Management - Startup paper