MEM 612 Project Management Chapter 1 The World of Project Management

MEM 612 Project Management WHAT IS A PROJECT?

MEM 612 Project Management 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.

MEM 612 Project Management Characteristics of Projects Unique Specific Deliverable Specific Due Date

MEM 612 Project Management Other Common Characteristics of Projects Multidisciplinary Complex Conflict Part of Programs

MEM 612 Project Management PMI Definition “A temporary endeavor undertaken to create a unique product or service” Project Management Institute, 2000

MEM 612 Project Management PROJECT MANAGEMENT VS. GENERAL MANAGEMENT

MEM 612 Project Management Skill Requirements for Effective Project Management Conflict Resolution Creativity and Flexibility Ability to Adjust to Change Good Planning Negotiation –win-win versus win-lose

MEM 612 Project Management WHAT IS MANAGED? THE THREE GOALS OF A PROJECT

MEM 612 Project Management Figure 1-1: Performance, Cost, and Time Project Targets

MEM 612 Project Management THE LIFE CYCLES OF PROJECTS

MEM 612 Project Management Figure 1-2 The Project Life Cycle

MEM 612 Project Management Figure 1-3 An Alternate Project Life Cycle

MEM 612 Project Management SELECTING PROJECTS

MEM 612 Project Management Nonnumeric Selection Methods The Sacred Cow The Operating/Competitive Necessity Comparative Benefits

MEM 612 Project Management Figure 1-4 The Q-Sort Method

MEM 612 Project Management Numeric Selection Methods Financial Assessment Methods –payback period –discounted cash flow Scoring Methods –unweighted 0-1 factor method –weighted factor scoring method

MEM 612 Project Management Payback Period

MEM 612 Project Management Discounted Cash Flow where I 0 = the initial investment F t = the net cash flow in period t k = the required rate of return or hurdle rate

MEM 612 Project Management The Weighted Scoring Model where S i = the total score of the i th project s ij = the score of the i th project on the j th criterion w j = the weight or importance of the j th criterion

MEM 612 Project Management Confronting Uncertainty – The Management of Risk

MEM 612 Project Management 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

MEM 612 Project Management Can uncertainty surrounding projects ever be eliminated? No, but it can be managed

MEM 612 Project Management Risk Analysis Estimate probabilities or distributions associated with key parameters Develop analytic or simulation model Analyze distribution of outcomes generated by model

MEM 612 Project Management Risk Analysis with Crystal Ball Assumption Cells Distribution Gallery Forecast Cells

MEM 612 Project Management THE PROJECT PORTFOLIO PROCESS

MEM 612 Project Management 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

MEM 612 Project Management The Aggregate Project Plan

MEM 612 Project Management Figure 1-12 An Example Aggregate Project Plan

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