MGMT 483 – Week 1

 Project management – a definition “Project management is the process by which projects are defined, planned, monitored, controlled and delivered such that the agreed benefits are realised. Projects are unique, transient endeavours undertaken to achieve a desired outcome. Projects bring about change and project management is recognised as the most efficient way of managing such change.”  Association for Project Management Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

 The expansion of knowledge to the point where no individual can grasp the knowledge necessary to create the goods and services demanded by modern society  The continuing demand for even more complex goods and services, where the user demands perfection without having to read the users manual.  Worldwide competition among the providers of goods and services forcing the need to understand local markets.  All of these contribute to the need for organizations to do more and to do it faster Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

 Projects tend to be large  The Channel Tunnel, or Chunnel  Denver International Airport  Panama Canal expansion project  Three Gorges Dam, China  Projects are getting larger over time  Flying: balloons  planes  jets  rockets  reusable rockets  The more we can do, the more we try to do Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

1. More people are seeing the advantages of project management techniques 2. The tools are become cheaper 3. The techniques are becoming more widely taught and written about  Wedding and other event planning  A new kitchen  A website redesign  Etc etc – some examples that come to mind? Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

 The management and balancing of 3 elements: 1. Time 2. Cost 3. Performance (scope)  Time, cost, and performance are all related on a project – there is always a “trade-off” Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

Figure 1-1 Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

 Projects are considered successful if they meet the stated objectives within cost and schedule goals.  The project manager must be mindful, however, of the set of often-unstated goals that form the fourth objective, namely:  the expectations of the client. Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

 Chaos Report 2009 (The Standish Group) Chaos Report 2009  Shows a “marked decrease in project success rates”  32% of all projects succeed: delivered on time, on budget, with required features and functions  44% were challenged: late, over budget, and/or with less than the required features and functions  24% failed: cancelled prior to completion or delivered and never used

 Any non-trivial project is almost certain to have problems – project management is hard  Problems with people  Poor communication  Lack of buy-in from key stakeholders  Resistance from employees / users  Tasks not completed as agreed  Problems with estimating time and budgets – overly optimistic or over-promising  Scope creep McNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall

 The Project Management Institute is the major project management organization / professional societyProject Management Institute  defines and standardize the body of knowledge (PMBOK)  has an important credentializing function  Founded in 1969  Very significant growth from 7,500 members in 1990 to over 260,000 in 2007  The Project Management Journal and PM Network are the leading project management journals Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

 Recent Changes in Managing Organizations –  The replacement of traditional hierarchical management with more consensual forms.  The increasing adoption of the “systems engineering” approach to problem solving.  The establishment of projects as the preferred way to accomplish the organizations goals. Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

 NASA: A day in the life of a project manager (3 videos from the Palatine Group). Project managers who worked on the Mars Pathfinder project talk about their experience and what it takes to be a good project manager.3 videos from the Palatine Group Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

 “A temporary endeavour undertaken to create a unique product or service” ▪ Project Management Institute (2004)  How do we distinguish a project from other kinds of work?  Major characteristics of a project  Importance – in the eyes of the organization (not necessarily size)  Performance – well defined set of goals  Life cycle with a finite due date  Interdependencies – interaction between project activities, and with other activities in the organization  Uniqueness – even routine project produce a unique result  Resources – budgets, personnel etc…..are always limited  Conflict – over cost, schedule, resources, requirements. Between stakeholders, between team members. There is always conflict in PM. Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

 Non-projects: Routine tasks that are performed again and again (projects are one-time events)  Quasi-projects (Bill, would you look into this?)are those that do not have a specific task identified, no specific budget, and no specific deadline defined. Although there are some uncertainties, project management skills can still be used to manage them. Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

 The main purpose for initiating a project is to accomplish some goal  Project management increases the likelihood of accomplishing that goal  Project management gives us someone (the project manager) to spearhead the project and to hold accountable for its completion  Better results  Better control  Better customer relations  Better ROI Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

 Project management is hard!  Greater organizational complexity  Higher probability organizational policy will be violated  Says managers cannot accomplish the desired outcome  Conflict Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

Figure 1-3 Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

Figure 1-4 Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

Figure 1-6 Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley. Estimate of project cost made at the start

Figure 1-7 Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley. Estimates of project cost made at time t 0, t 1 and t 2

 Follows the project life cycle  Part 1 - Project initiation  project startup, organization and proposals.  Part 2 - Project planning and implementation  planning, scheduling, budgeting and controlling projects  Part 3 – Project execution Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

 MS Project  Basecamp – an example of a hosted, “software-as-a-service” application Basecamp Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.