Chapter
Chapter One
One
Introduction to Project
Management
Chapter
Chapter Objectives
Objectives
1. Understand the Importance of Projects and
Project Management.
2. Define Projects and discuss project constraints
3. Define Project Management and its Importance
for doing business nowadays.
4. Introduce Project Management Knowledge
Areas.
5. Introduce Project Life Cycle.
6. Understand the Importance of Project
management Integration.
1–2
Modern
Modern Project
Project Management
Management
What
What is
is aa Project?
Project?
• Project Defined
– A complex, nonroutine, one-time effort limited by time,
budget, resources, and performance specifications
designed to meet customer needs.
– A project is a temporary endeavor undertaken to
accomplish a unique purpose “product or service”.
– “An activity with a fixed start and end point, managed with
finite resources, involving change and often achieved by
the collective effort of the team of people”
– “A project is a sequence of unique, complex, and
connected activities. Having one goal or purpose that must
be completed by a specific time, within budget, and
according to specification” (Artto, 2002)
1–3
Attributes
Attributes of
of Projects
Projects
Major Characteristics of a Project (Attributes)
1.Importance: The most crucial attribute of a project is that
it must be important enough in the eyes of senior
management to justify setting up a special organizational unit
outside the routine structure of the organization.
2.Uniqueness: has an established objective (unique
purpose). Involves doing something never been done before.
3.Defined Life Cycle: Has a defined life span with a
beginning and an end (temporary).
4.Performance: A project is usually a one-time activity with
a well-defined set of desired end results.
5. Has specific time, cost, and performance requirements.
1–4
Attributes
Attributes of
of Projects
Projects
Major Characteristics of a Project (Attributes)
6. Interdependencies: Projects often interact with other projects being
carried out simultaneously by their parent organization. Require
across-the-organizational participation (require resources from
different areas).
7. Conflict: Projects compete with functional departments and other
projects for resources and personnel.
• Conflicts between customers and the project team over
requirements.
• Conflicts within the project team over approach and process.
• Conflicts between the project manager and his/her management
over cost and schedule.
• Conflicts between project managers and other managers on who
controls the resources that the project manager needs.
8. should have a primary sponsor and/or customer
9. involve uncertainty
1–5
What
What aa Project
Project Is
Is Not
Not
− Projects should not be confused with everyday work.
− A project is not routine, repetitive work.
− Ordinary daily work typically requires doing the same
or similar work over and over
− while a project is done only once; a new product or
service exists when the project is completed.
1–6
Comparison
Comparison of
of Routine
Routine Work
Work with
with Projects
Projects
Routine, Repetitive Work Projects
Taking class notes Writing a term paper
Daily entering sales receipts into Setting up a sales kiosk for a
the accounting ledger professional accounting meeting
Responding to a supply-chain Developing a supply-chain
request information system
Practicing scales on the piano Writing a new piano piece
Routine manufacture of an Apple Designing an iPod that is
iPod approximately 2 X 4 inches,
interfaces with PC, and
stores 10,000 songs
Attaching tags on a manufactured Wire-tag projects for GE and
product Wal-Mart
1–7
Three
Three Major
Major Constraints
Constraints
• Every project is constrained in different ways by
its
– Scope goals: What is the project trying to accomplish?
– Time goals: How long should it take to complete?
– Cost goals: What should it cost?
• It is the project manager’s duty to balance these
three often competing goals
1–8
Three
Three Major
Major Constraints
Constraints
1–9
Programs
Programs versus
versus Projects
Projects
• Program Defined
– A series of coordinated, related, multiple projects that continue
over an extended time and are intended to achieve a goal.
– A higher level group of projects targeted at a common goal.
– Program: “A group of related projects managed in a
coordinated way to obtain benefits and control not available
from managing them individually.”*
– Process – a series of steps needed to perform a routine activity (e.g.
purchasing). A project may contain many processes.
– Program management is the process of managing a group of
ongoing, interdependent, related projects in a coordinated way to
achieve strategic objectives.
1–10
Programs
Programs versus
versus Projects
Projects
1–11
What
What is
is Project
Project Management?
Management?
• Project management is “the application of
knowledge, skills, tools, and techniques to
project activities in order to meet project
requirements” (PMI*, Project Management
Body of Knowledge (PMBOK Guide), 2000, p.
6)
*The Project Management Institute (PMI) is an
international professional society. Their web
site is www.pmi.org.
1–12
Project
Project Life
Life Cycle
Cycle
• The project life cycle typically passes
sequentially through four stages:
defining, planning, executing, and delivering.
The starting point begins the moment the project
is given the go-ahead. Project effort starts
slowly, builds to a peak, and then declines to
delivery of the project to the customer.
1–13
1. Defining stage: Specifications of the project are
defined; project objectives are established; teams are
formed; major responsibilities are assigned.
2. Planning stage: The level of effort increases, and
plans are developed to determine what the project will
entail, when it will be scheduled, whom it will benefit,
what quality level should be maintained, and what the
budget will be.
1–14
3. Executing stage: A major portion of the project work
takes place—both physical and mental. The physical
product is produced (a bridge, a report, a software
program). Time, cost, and specification measures are used
for control. Is the project on schedule, on budget, and
meeting specifications? What are the forecasts of each of
these measures? What revisions/changes are necessary?
4. Closing stage: Closing includes three activities:
delivering the project product to the customer, redeploying
project resources, and post-project review. Delivery of
1–15
Project
Project Life
Life Cycle
Cycle
FIGURE 1.1
1–16
: Iterative & Overlapping
Executing
Process
LE V E L O F A C T I V I T Y
Planning
Process
Initiating Closing
Process Process
Controlling
Process
PROJECT PROJECT
START TI ME FINISH
PHASES OF THE PROJECT LIFE CYCLE
Proprietary - PMI Pittsburgh
Project
Project Management
Management Framework
Framework
1–18
Project
Project Stakeholders
Stakeholders
• Stakeholders are the people involved in or
affected by project activities
• Stakeholders include
– Project sponsor
– Project manager
– Project team
– Support staff
– Customers
– Users
– Suppliers
– Opponents to the project
1–19
99 Project
Project Management
Management Knowledge
Knowledge Areas
Areas
• Knowledge areas describe the key
competencies that project managers must
develop
– 4 core knowledge areas lead to specific project
objectives (scope, time, cost, and quality)
– 4 facilitating knowledge areas are the means through
which the project objectives are achieved (human
resources, communication, risk, and procurement
management
– 1 knowledge area (project integration management)
affects and is affected by all of the other knowledge
areas
1–20
Project
Project Management
Management Tools
Tools and
and Techniques
Techniques
• Project management tools and techniques
assist project managers and their teams in
various aspects of project management
• Some specific ones include
–Project Charter and WBS (scope)
–Gantt charts, network diagrams, critical path
analysis, critical chain scheduling (time)
–Cost estimates and earned value
management (cost)
1–21
Project
Project Portfolio
Portfolio Management
Management
• Many organizations support an emerging
business strategy of project portfolio
management:
– Organizations group and manage projects as a
portfolio of investments that contribute to the entire
enterprise’s success.
1–22
Major
Major Functions
Functions of
of Portfolio
Portfolio Management
Management
• Oversee project selection.
• Monitor aggregate resource levels and skills.
• Encourage use of best practices.
• Balance projects in the portfolio in order to represent
a risk level appropriate to the organization.
• Improve communication among all stakeholders.
• Create a total organization perspective that goes
beyond silo thinking.
• Improve overall management of projects over time.
1–23
Knowledge
Knowledge Areas
Areas and
and Life
Life Cycle
Cycle
FIGURE 1.1
1–24
The
The Challenge
Challenge of
of Project
Project Management
Management
The
The Project
Project Manager
Manager
• Job descriptions vary, but most include responsibilities such as
planning, scheduling, coordinating, and working with people to achieve
project goals.
• Manages temporary, non-repetitive activities and frequently acts
independently of the formal organization.
• Marshals resources for the project.
• Is linked directly to the customer interface.
• Provides direction, coordination, and integration to the
project team.
• Is responsible for performance and success of the project.
• Must induce the right people at the right time to address the
right issues and make the right decisions.
1–25
Fifteen
Fifteen Project
Project Management
Management Job
Job Functions*
Functions*
1. Define scope of project. 7. Evaluate project requirements.
2. Identify stakeholders, 8. Identify and evaluate risks.
decision-makers, and 9. Prepare contingency plan.
escalation procedures. 10. Identify interdependencies.
3. Develop detailed task list 11. Identify and track critical
(work breakdown structures). milestones.
4. Estimate time requirements. 12. Participate in project phase
5. Develop initial project review.
management flow chart. 13. Secure needed resources.
6. Identify required resources 14. Manage the change control
process.
and budget.
15. Report project status.
1–26
Suggested
Suggested Skills
Skills for
for Project
Project Managers
Managers
• Project managers need a wide variety of skills.
• They should:
– Be comfortable with change.
– Understand the organizations they work in and with.
– Lead teams to accomplish project goals.
• Project managers need both “hard” and “soft” skills.
– Hard skills include product knowledge and knowing how
to use various project management tools and
techniques.
– Soft skills include being able to work with various types
of people.
1–27
Suggested
Suggested Skills
Skills for
for Project
Project Managers
Managers
• Communication skills: Listens, persuades.
• Organizational skills: Plans, sets goals,
analyzes.
• Team-building skills: Shows empathy, motivates,
promotes esprit de corps.
• Leadership skills: Sets examples, provides vision
(big picture), delegates, positive, energetic.
• Coping skills: Flexible, creative, patient,
persistent.
• Technology skills: Experience, project
knowledge.
1–28
The
The Importance
Importance of
of Project
Project Management
Management
• Factors leading to the increased use
of project management:
– Compression of the product life cycle
– Knowledge explosion
– Triple bottom line (planet, people, profit)
– Corporate downsizing
– Increased customer focus
– Small projects represent big problems
1–29
More
More Advantages
Advantages of
of Project
Project Management*
Management*
• Bosses, customers, and other stakeholders do
not like surprises
• Good project management (PM) provides
assurance and reduces risk
• PM provides the tools and environment to plan,
monitor, track, and manage schedules,
resources, costs, and quality
• PM provides a history or metrics base for future
planning as well as good documentation
• Project members learn and grow by working in a
cross-functional team environment
*Knutson, Joan, PM Network, December 1997, p. 13
1–30
Benefits
Benefits of
of an
an Integrative
Integrative Approach
Approach
to
to Project
Project Management
Management
• Integration (or centralization) of project
management provides senior management with:
– An overview of all project management activities
– A big picture of how organizational resources are used
– A risk assessment of their portfolio of projects
– A rough metric of the firm’s improvement in managing
projects relative to others in the industry
– Linkages of senior management with actual project
execution management
1–31
Integrated
Integrated Project
Project Management
Management Systems
Systems
• Problems resulting from the use of piecemeal
project management systems:
– Do not tie together the overall strategies of the firm.
– Fail to prioritize selection of projects by their
importance of their contribution to the firm.
– Are not integrated throughout the project life cycle.
– Do not match project planning and controls with
organizational culture to make appropriate
adjustments in support of project endeavors.
1–32
Integrated
Integrated Management
Management of
of Projects
Projects
FIGURE 1.2
1–33
Project
Project Management
Management Office
Office (PMO)
(PMO)
• A PMO is an organizational group responsible for coordinating the
project management function throughout an organization.
• Possible goals include:
– Collect, organize, and integrate project data for the entire
organization.
– Develop and maintain templates for project documents.
– Develop or coordinate training in various project
management topics.
– Develop and provide a formal career path for project
managers.
– Provide project management consulting services.
– Provide a structure to house project managers while they
are acting in those roles or are between projects.
1–34
The
TheTechnical
Technical
and
andSociocultural
Sociocultural
Dimensions
Dimensions
of
ofthe
theProject
Project
Management
Management
Process
Process
FIGURE 1.3
1–35
An
An Overview
Overview of
of Project
Project Management
Management 5e.
5e.
1–36
