Day 2

 Questions??  Blackboard updates  IP Projects discussions  Why project management??  Assignment 1 posted in Blackboard ◦ Due in one week; September 3:35 PM 1-2

 Team based ◦ 2 teams  Think of a large project that will require a project plan  Must require at least 10 people to complete ◦ Must require 10 or more weeks to complete ◦ Must be constrained by a budget  Suggestions ◦ Plan an event ◦ Build something  Product, business, capital asset ◦ Change something

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 Examples of projects ◦ Split the atom ◦ Chunnel between England and France ◦ Introduce Windows XP “Projects, rather than repetitive tasks, are now the basis for most value-added in business” -Tom Peters 1-5

Project  Take place outside the process world  Unique and separate from normal organization work 1-6 Process Ongoing, day-to-day activities Use existing systems, properties, and capabilities A project is a unique venture with a beginning and an end, conducted by people to meet established goals within parameters of cost, schedule and quality.

 Complex, one-time processes  Limited by budget, schedule, and resources  Developed to resolve a clear goal or set of goals (deliverables)  Customer-focused 1-7

 Ad-hoc endeavors with a clear life cycle  Building blocks in the design and execution of organizational strategies  Responsible for the newest and most improved products, services, and organizational processes  Provide a philosophy and strategy for the management of change 1-8

 Entail crossing functional and organization boundaries  Traditional management functions of planning, organizing, motivating, directing, and controlling apply  Principal outcomes are the satisfaction of customer requirements within technical, cost, and schedule constraints  Terminated upon successful completion 1-9

1-10 Process 1.Repeat process or product 2.Several objectives 3.On-going 4.People are homogeneous 5.Systems in place 6.Performance, cost, & time known 7.Part of the line organization 8.Bastions of established practice 9.Supports status quo Project 1.New process or product 2.One objective 3.One shot – limited life 4.More heterogeneous 5.Systems must be created 6.Performance, cost & time less certain 7.Outside of line organization 8.Violates established practice 9.Upsets status quo

 Software & hardware projects fail at a 65% rate  Over half of all IT projects become runaways  Up to 75% of all software projects are cancelled  Average cost overrun is 45%; schedule overrun is 63%; with only 67% of originally contracted features  47% of IT projects delivered but not used, 29% paid for but not delivered; 19% abandoned 1- 11

1- 12 Happens more often than most people think !

1. Shortened product life cycles 2. Narrow product launch windows 3. Increasingly complex and technical products 4. Emergence of global markets 5. Economic period marked by low inflation 1- 13

,000 workers and a $73 billion cost estimate, idea in 1920’s, construction began in 1994 and is to be completed in

1- 15 Man Hours ConceptualizationPlanningExecutionTermination

1- 16 ConceptualizationPlanningExecutionTermination Uncertainty Client Interest Project Stake Creativity Resources

Success Budget Client Acceptance SchedulePerformance 1- 17

1. System quality 2. Information quality 3. Use 4. User satisfaction 5. Individual Impact 6. Organizational impact 1- 18

1- 19 Project Completion Time Importance 1 Project Efficiency 4 Preparing for The Future 2 Impact on Customer 3 Business Success

Iron triangle Information System Benefits (Organization) Benefits (Stakeholders) Cost Quality Time Maintainability Reliability Validity Quality Use Improved efficiency Improved effectiveness Increased Profits Strategic goals Organization learning Reduced Waste Satisfied users Social and environmental Impact Personal Development Professional learning, Contractors’ profits Capital suppliers. content Project team, economic Impact to surrounding Community 1- 20

 Determines Organizational adaptation of Best Practices ◦ Analyze and assess ◦ Benchmark ◦ Change ◦ Re-Measure 1- 21

Not defined or poor 1 Defined but substandard 2 Standardized 3 Industry leader or cutting edge

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Project management maturity models ◦ Center for business practices ◦ Kerzner’s project management maturity model ◦ ESI International’s project framework ◦ SEI’s capability maturity model integration 1- 24

1- 25 Low Maturity Ad hoc process, no common language, little support Moderate Maturity Defined practices, training programs, organizational support High Maturity Institutionalized, seeks continuous improvement

 Foundation  Chapter 1 - Introduction: Why Project Management?  Chapter 2 - The Organization Context: Strategy, Structure, and Culture  Chapter 3 - Project Selection and Portfolio Management  Chapter 4 - Leadership and the Project Manager  Planning  Chapter 5 - Scope Management  Chapter 6 - Project Team Building, Conflict, and Negotiation  Chapter 7 - Risk Management  Chapter 8 - Cost Estimation and Budgeting  Planning (con’t)  Chapter 9 - Project Scheduling: Networks, Duration Estimation, and Critical Path  Chapter 10 - Project Scheduling: Lagging, Crashing, and Activity Networks  Chapter 11 - Critical Chain Project Scheduling  Chapter 12 - Resource Management  Implementation  Chapter 13 - Project Evaluation and Control  Termination  Chapter 14 - Project Close-out and Termination

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