Chapter 1 Project Management Concepts

Learning Objectives Definition of a project and its attributes Key constraints within which a project must be managed How a project is “born” Life of a project Steps involved in the project management process Benefits of project management 2 2 2 2 2 2 2 2 2 2 2

Real World Example Vignette: Project Management for Better Health The Interior Health Authority (IHA) had two goals: to integrate over 100 independent financial applications into one system, and to consolidate and standardize electronic health records Executive support was established for both objectives and project teams were formed Projects were completed on time and under budget. They are being geographically implemented Results of both projects: cost savings, and higher user satisfaction 3 3 3 3 3 3 3 3 3 3 3

Real World Example Vignette: Making Movies Musaffar Ali, well-known Indian filmmaker, was in the process of making “Zooni” in January 1989 when violence broke out where he was filming 14 years later, he was able to resume filming when peace reached the region To finish his film, Ali needs to stay on schedule and within his budget. A script breakdown is designed to consider tasks and factors that help determine schedule and budget. Use of a script breakdown, and open communication between assistant director and production manager will help Ali reach to complete his project effectively 4 5 5 4 5 4 4 4 4 4

Project, Defined A project is: an endeavor to accomplish a specific objective through a unique set of interrelated tasks and the effective utilization of resources. 5 7 7 5 7 5 5 5 5 5

Attributes of a Project Has a well-defined objective Composed of a series of interdependent tasks Utilizes various resources Has a specific time frame Has a customer Involves a degree of uncertainty 6 8 8 6 8 6 6 6 6 6

Examples of Projects Planning a wedding Designing and implementing a computer system Hosting a holiday party Designing and producing a brochure Executing an environmental clean-up of a contaminated site Holding a high school reunion Performing a series of surgeries on an accident victim 7 10 10 7 10 7 7 7 7 7

Constraints Scope Cost Schedule Customer satisfaction 8 11 11 8 11 8 8

Unforeseen Circumstances Unforeseen circumstances may jeopardize achievement of the project objective. The challenge facing the project manager is to prevent, anticipate, and/or overcome such circumstances. 9 14 14 9 14 9 9 9 9 9

The Project Life Cycle Projects are “born” when a need is identified by the customer. Project life cycles vary in length, from a few weeks to several years. Not all projects formally go through all four phases of the project life cycle. 10 16 16 10 16 10 10 10 10 10

Project Life Cycle: Phase 1 The first phase involves the identification of a need, problem, or opportunity. The need and requirements are usually written by the customer into a document called a request for proposal (RFP). 11 17 17 11 17 11 11 11 11 11

Project Life Cycle: Phase 2 The second phase is the development of a proposed solution to the need or problem. This phase results in the submission of a proposal. The customer and the winning contractor negotiate and sign a contract (agreement). 12 18 18 12 18 12 12 12 12 12

Project Life Cycle: Phase 3 The third phase is performing the project. Different types of resources are utilized Results in the accomplishment of the project objective Includes: Detailed planning Implementation of the plan 13 19 19 13 19 13 13 13 13 13

Project Life Cycle: Phase 4 The final phase is terminating the project. Perform close-out activities Evaluate performance Invite customer feedback 14 20 20 14 20 14 14 14 14 14

The Project Management Process The project management process means planning the work and then working the plan. 16 21 21 15 21 15 15 15 15 15

The Project Management Process (Cont.) Clearly define the project objective. Divide and subdivide the project. Define the specific activities that need to be performed. Graphically portray the activities in a network diagram. 17 22 22 16 22 16 16 16 16 16

The Project Management Process (Cont.) Make a time estimate. Make a cost estimate. Calculate a project schedule and budget. RESULT: BASELINE PLAN 18 24 24 17 24 17 17 17 17 17

Controlling Projects Establish a baseline plan. Monitor progress. Measure actual progress and compare it to planned progress. Take corrective action if the project is behind schedule, overrunning the budget, or not meeting technical specifications. 19 25 25 18 25 18 18 18 18 18

Benefits of Project Management Satisfied customers Additional business Expansion of career opportunities Satisfaction of being on a winning team Improved knowledge and skills When projects are successful, everybody WINS 20 28 28 19 28 19 19 19 19 19

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