Project Management: A Managerial Approach Chapter 1 – Projects in Contemporary Organizations © 2006 John Wiley and Sons, Inc.

© 2006 John Wiley and Sons, Inc. Overview Project Management Growth Factors Project Aspects Project Criteria Project Life Cycle Project Management Profession © 2006 John Wiley and Sons, Inc.

Project Management Emergence Explosion in human knowledge Mass customization of products and services Expansion of global markets © 2006 John Wiley and Sons, Inc.

Forces Of Project Management Forces driving Project Management: 1. exponential expansion of human knowledge 2. growing demand for a broad range of complex, sophisticated, customized goods and services 3. evolution of worldwide competitive markets for the production and consumption of goods and services Team-based problem solving v. individual © 2006 John Wiley and Sons, Inc.

The Professionalism of Project Management Complexity of problems facing the project manager Growth in number of project oriented organizations The Project Management Institute (PMI) was established in 1969 By 1990 it had 7,500 members 1995, over 17,000 members 1998--exploded to over 44,000 members This exponential growth is indicative of the rapid growth in the use of projects Importance of PMI as a force in the development of project management as a profession © 2006 John Wiley and Sons, Inc.

Project Management Institute: Membership Growth Curve © 2006 John Wiley and Sons, Inc.

Organizational Imperatives Traditional hierarchical management declining Consensual management increasing Increasing reliance on systems engineering Projects integral to organizational strategy © 2006 John Wiley and Sons, Inc.

The Definition of a “Project” Must make a distinction between terms: Program - an exceptionally large, long-range objective that is broken down into a set of projects Task - set of activities comprising a project Work Packages - division of tasks Work Units - division of work packages A specific, finite task to be accomplished © 2006 John Wiley and Sons, Inc.

Project Management A Working Definition A problem with a known solution scheduled for completion—unique and non-routine activities Project Management: The science and art of solving the problem within predetermined time and resource parameters Shouldering just enough risk to escape with your career intact!!! © 2006 John Wiley and Sons, Inc.

Characteristics of a Project Have a supported purpose/importance Performance specifications (form, fit, function) Known (bounded) solution Have a life cycle with finite due date Interdependencies Uniqueness Resource requirements and tradeoffs Stakeholder Conflict © 2006 John Wiley and Sons, Inc.

Quasi-Projects and Fuzzy Goals Tasks without Specific Targets No Who, What, When, Where, How Much Implied Performance, Cost, Time Constraints “Projects” to Determine Project Scope Warning: If these Become Projects, Expect Delays, Cost Overruns, Dissatisfied Customers © 2006 John Wiley and Sons, Inc.

Objectives of a Project Project Objectives: Performance Time Cost Expectations of clients inherent part of the project specifications © 2006 John Wiley and Sons, Inc.

Objectives of a Project 3 Project Objectives: © 2006 John Wiley and Sons, Inc.

Why Project Management? Companies have experienced: Better customer relations Shorter overall delivery times Lower costs and higher profit margins Higher quality and reliability Higher worker morale © 2006 John Wiley and Sons, Inc.

Why (not) Project Management? Companies have also experienced some negatives: Greater organizational complexity Increased likelihood of organizational policy violations Higher costs More management difficulties Low personnel utilization © 2006 John Wiley and Sons, Inc.

© 2006 John Wiley and Sons, Inc. The Project Life Cycle Stages of a Conventional Project: Slow beginning Buildup of size Peak Begin a decline Termination © 2006 John Wiley and Sons, Inc.

© 2006 John Wiley and Sons, Inc. The Project Life Cycle © 2006 John Wiley and Sons, Inc.

© 2006 John Wiley and Sons, Inc. The Project Life Cycle Projects also exist which do not follow the conventional project life cycle Comprised of subunits that have little use as a stand alone unit, yet become useful when put together © 2006 John Wiley and Sons, Inc.

© 2006 John Wiley and Sons, Inc. The Project Life Cycle Time distribution of project effort is characterized by slow-rapid-slow © 2006 John Wiley and Sons, Inc.

Project Management Life Cycle Definition Planning Implementation Delivery Level of effort 1. Goals 2. Specifications 3. Scope 4. Responsibilities 5. Teams 1. WBS 2. Budgets 3. Resources 4. Risks 5. Schedule 1. Status reports 2. Change Orders 3. Quality Audits 4. Contingencies 1. Train user 2. Transfer documents 3. Release resources 4. Reassign staff 5. Lessons learned © 2006 John Wiley and Sons, Inc.

Proactive Project Life Cycle High Project Manager Roles and Responsibilities Level of Value Effort Change Management System Closed-Loop Planning-Monitor-Control System Project Evaluation (Audit) Process Low Define Plan Implement Delivery Scope WBS/OBS/Schedule Resource (Re)allocation “Learn Curve” Tradeoffs Detailed Budget Cost Containment Final Report © 2006 John Wiley and Sons, Inc.

© 2006 John Wiley and Sons, Inc. The Project Life Cycle Unlike the more conventional life cycle, continued inputs of effort at the end of the project produce significant gains in returns © 2006 John Wiley and Sons, Inc.

Projects in Contemporary Organizations Figure 1-3 © 2006 John Wiley and Sons, Inc.

Projects in Contemporary Organizations Figure 1-4 © 2006 John Wiley and Sons, Inc.

Projects in Contemporary Organizations Figure 1-5 © 2006 John Wiley and Sons, Inc.

Projects in Contemporary Organizations Figure 1-6 © 2006 John Wiley and Sons, Inc.

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