Project Management in Practice Second Edition Mantel, Meredith, Shafer, and Sutton Prepared by Scott M. Shafer Wake Forest University John Wiley and Sons, Inc. Copyright 2005 John Wiley & Sons, Inc.

The World of Project Management Chapter 1 The World of Project Management Copyright 2005 John Wiley & Sons, Inc.

Copyright 2005 John Wiley & Sons, Inc. WHAT IS A PROJECT? Copyright 2005 John Wiley & Sons, Inc.

Why the emphasis on project management? Many tasks do not fit neatly into business-as-usual. Need to assign responsibility and authority for achievement of organizational goals. Copyright 2005 John Wiley & Sons, Inc.

Characteristics of Projects Unique Specific Deliverable Specific Due Date Copyright 2005 John Wiley & Sons, Inc.

Other Common Characteristics of Projects Multidisciplinary Complex Conflict Part of Programs Copyright 2005 John Wiley & Sons, Inc.

Copyright 2005 John Wiley & Sons, Inc. PMI Definition “A temporary endeavor undertaken to create a unique product or service” Project Management Institute, 2000 Copyright 2005 John Wiley & Sons, Inc.

PROJECT MANAGEMENT VS. GENERAL MANAGEMENT Copyright 2005 John Wiley & Sons, Inc.

Skill Requirements for Effective Project Management Conflict Resolution Creativity and Flexibility Ability to Adjust to Change Good Planning Negotiation win-win versus win-lose Copyright 2005 John Wiley & Sons, Inc.

WHAT IS MANAGED? THE THREE GOALS OF A PROJECT Copyright 2005 John Wiley & Sons, Inc.

Figure 1-1: Performance, Cost, and Time Project Targets Copyright 2005 John Wiley & Sons, Inc.

THE LIFE CYCLES OF PROJECTS Copyright 2005 John Wiley & Sons, Inc.

Figure 1-2 The Project Life Cycle Copyright 2005 John Wiley & Sons, Inc.

Figure 1-3 An Alternate Project Life Cycle Copyright 2005 John Wiley & Sons, Inc.

Copyright 2005 John Wiley & Sons, Inc. SELECTING PROJECTS Copyright 2005 John Wiley & Sons, Inc.

Nonnumeric Selection Methods The Sacred Cow The Operating/Competitive Necessity Comparative Benefits Copyright 2005 John Wiley & Sons, Inc.

Figure 1-4 The Q-Sort Method Copyright 2005 John Wiley & Sons, Inc.

Numeric Selection Methods Financial Assessment Methods payback period discounted cash flow Scoring Methods unweighted 0-1 factor method weighted factor scoring method Copyright 2005 John Wiley & Sons, Inc.

Copyright 2005 John Wiley & Sons, Inc. Payback Period Copyright 2005 John Wiley & Sons, Inc.

Copyright 2005 John Wiley & Sons, Inc. Discounted Cash Flow where I0 = the initial investment Ft = the net cash flow in period t k = the required rate of return or hurdle rate Copyright 2005 John Wiley & Sons, Inc.

The Weighted Scoring Model where Si = the total score of the ith project sij = the score of the ith project on the jth criterion wj = the weight or importance of the jth criterion Copyright 2005 John Wiley & Sons, Inc.

Confronting Uncertainty – The Management of Risk Copyright 2005 John Wiley & Sons, Inc.

What uncertainties are encountered in project management? Time required to complete a project Availability of key resources Cost of resources Timing of solutions to technological problems Actions taken by competitors Copyright 2005 John Wiley & Sons, Inc.

Can uncertainty surrounding projects ever be eliminated? No, but it can be managed Copyright 2005 John Wiley & Sons, Inc.

Copyright 2005 John Wiley & Sons, Inc. Risk Analysis Estimate probabilities or distributions associated with key parameters Develop analytic or simulation model Analyze distribution of outcomes generated by model Copyright 2005 John Wiley & Sons, Inc.

Risk Analysis with Crystal Ball Assumption Cells Distribution Gallery Forecast Cells Copyright 2005 John Wiley & Sons, Inc.

THE PROJECT PORTFOLIO PROCESS Copyright 2005 John Wiley & Sons, Inc.

The Project Portfolio Process Step 1: Establish a Project Council Step 2: Identify Project Categories and Criteria Step 3: Collect Project Data Step 4: Assess Resource Availability Step 5: Reduce the Project and Criteria Set Step 6: Prioritize the Projects within Categories Step 7: Select the Projects to be Funded and Held in Reserve Step 8: Implement the Process Copyright 2005 John Wiley & Sons, Inc.

The Aggregate Project Plan Copyright 2005 John Wiley & Sons, Inc.

Figure 1-12 An Example Aggregate Project Plan Copyright 2005 John Wiley & Sons, Inc.

Copyright 2005 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information herein. Copyright 2005 John Wiley & Sons, Inc.