1. Project Management 1. What is Project Management

2. Turn your phones off Picture by Mike Licht, NotionsCapital.com

3. First
1st
Form into 12 Groups

4. Second
2nd
Your motivation

5. A walk through the course outline
Photo by Tricky at flickr

6. The textbook
Gray, C., & Larson, E. (2006). Project management – The managerial process (3rd ed.). NY: McGraw-Hill G791p3     

7. All projects have a beginning, a middle and an end.
1. What is a Project?
Beginning
Middle
End
Def: A temporary endeavor undertaken to accomplish a unique purpose needs
Major Characteristics of a Project:
Established objectives
Defined life span with a beginning and end
Across-organizational participation
New or unique
Specific time, cost, and performance requirements
All projects have a beginning, a middle and an end.

8. “A temporary endeavor undertaken to accomplish a unique purpose”
Beginning
Middle
End
A definition:
“A temporary endeavor undertaken to accomplish a unique purpose”

9. Typically 189% over budget
1994
31% Critical Failures
53%
Challenged
16%
Success
Not even completed
Typically 189% over budget
OTOBOS
Source: CHAOS Report 1995 by the Standish Group
Access it here:
Since 1995 several subsequent versions have been published. Project performance has improved… incrementally.. Over the subsequent decade.
There is still significant improvement opportunities for the IT projects industry.
What do you think is going wrong at your workplace? What can be done to improve things?
The 1995 Standish (CHAOS) report found the following factors common to successful projects1.
User Involvement 15.9%
2. Executive Management Support 13.9%
3. Clear Statement of Requirements 13.0%
4. Proper Planning 9.6%
5. Realistic Expectations 8.2%
6. Smaller Project Milestones 7.7%
7. Competent Staff 7.2%
8. Ownership 5.3%
9. Clear Vision & Objectives 2.9%
10. Hard-Working, Focused Staff 2.4%
Other 13.9%
Source: CHAOS Report 1995 by the Standish Group
Access it here: 1 2 3 4 5 6 7 8

10. A target outcome
A defined life span
Cross organisational participation
New or unique
Time, Cost and performance requirements
Projects have a common set of characteristics which can also be defined by what they are not

11. A target outcome
A defined life span
Cross organisational participation
New or unique
Time, Cost and performance requirements
Projects have a common set of characteristics which can also be defined by what they are not

12. What a project isn’t Explorations Go on indefinitely
One team or one person working alone
Creating the same thing multiple times
No constraints on time, cost or performance

13. Projects v Not Projects
Routine, Repetitive Work
Taking class notes
Daily entering sales receipts into the accounting ledger
Responding to a supply-chain request
Practicing scales on the piano
Routine manufacture of an Apple iPod
Attaching tags on a manufactured product
Projects
Writing a term paper
Setting up a sales kiosk for a professional accounting meeting
Developing a supply-chain information system
Writing a new piano piece
Designing an iPod that is approximately 2 X 4 inches, interfaces with PC, and stores 10,000 songs
Wire-tag projects for GE and Wal-Mart

14. All projects typically go through these five processes
Process Groups
Initiate
Plan
Monitor & Control
Implement
Close
All projects typically go through these five processes

15. Step 1 Step 2 Step 3 Result activity inputs outputs
Def: A process is a series of actions directed toward a particular result
Project management can be viewed as a number of interlinked processes
Process groups include:
Initiating processes
Planning processes
Executing processes
Monitoring and controlling processes
Closing processes
A process is a series of actions directed towards a particular result.

16. Figure 1.1 Project Life Cycle (Gray & Larson, 2006, p6)

17. Also known as the IRON TRIANGLE
3. The Triple Constraint
Time
Scope
Cost
Every project is constrained by:
Scope
What work will be done as part of the project? What unique product, service, or result does the customer or sponsor expect from the project?
Time
How long should it take to complete the project? What is the project’s schedule?
Cost
What should it cost to complete the project? What is the project’s budget?
Also known as the IRON TRIANGLE

18. Project manager’s duty to balance the three often competing goals
May be good enough to hit the target, or range of triple constraint goals
Important to determine which aspects of the triple constraint are most important
“Quadruple constraint” includes quality as well as scope, time, and cost
Figure 1.1 Triple Constraint of Project Management (Schwalbe, 2006, p8)

19. The Quadruple Constraint
Quality
Time
Scope
Cost
Every project is constrained by:
Scope
What work will be done as part of the project? What unique product, service, or result does the customer or sponsor expect from the project?
Time
How long should it take to complete the project? What is the project’s schedule?
Cost
What should it cost to complete the project? What is the project’s budget?
Warning: Quality has many definitions

20. 4. What is Project Management?
Advantages of Project Management
Better control of financial, physical, and human resources
Improved customer relations
Shorter development times
Lower costs
Higher quality and increased reliability
Higher profit margins
Improved productivity
Better internal coordination
Def: Project Management is …
“the application of knowledge, skills, tools and techniques to project activities to meet project requirements” (PMI, 2004, p8).
Challenge of Project Management:
Managing temporary, non-repetitive activities and often acting independent of the organization
Getting right people, right time to address the right issues and make the right decisions
Duties of Project Managers:
Gather resources for the project
Linked to the customer interface
Provides direction, coordination, and integration to the project team
Responsible for performance and success of the project

22. 5. The Project Manager
Week 6 – Leading Teams
Week 7 – Managing Teams

23. Suggested Skills: Communication skills: listening, persuading
Organizational skills: planning, goal-setting, analyzing
Team Building skills: understanding, motivation,
Leadership skills: sets example, energetic, vision, delegates, positive
Coping skills: flexibility, creativity, patience, persistence
Technological skills: experience, knowledge
(Schwalbe, 2006, p17)

24. 6. Importance of Project Management
Increased use of Project Management
Compressed product life cycle
Global competition
Knowledge explosion
Corporate downsizing
Increased customer focus
Development of Third World and closed economies

25. 7. Project Management Framework
Integration
Management
Time Management
Cost Management
Scope Management
Quality Management
HR Management
Risk Management
Communication Management
Procurement Management
Describe key competencies that project managers must develop:
Core function areas lead to specific project objectives (scope, time, cost, and quality)
Facilitating function areas are the means for achieving project objectives (human resources, communication, risk, and procurement management)
Knowledge function (project integration management) influences and is influenced by all other areas
The PMBOK’s 9 Knowledge areas

26. Figure 1.2 Project Management Framework (Schwalbe, 2006, p9)

27. Why would a team member be a stakeholder?
8. Integrated Approach
Stakeholders
are people involved in or affected by project activities
Stakeholders include:
Project sponsor
Project manager
Project team
Support staff
Customers
Suppliers
Opponents to the project
Why would a team member be a stakeholder?

28. Sponsor & Supporters
Project Team
Suppliers
Customers
Opponents

29. The PMBOK’s 9 Knowledge areas
Integration
Management
Time Management
Cost Management
Scope Management
Quality Management
HR Management
Risk Management
Communication Management
Procurement Management
Describe key competencies that project managers must develop:
Core function areas lead to specific project objectives (scope, time, cost, and quality)
Facilitating function areas are the means for achieving project objectives (human resources, communication, risk, and procurement management)
Knowledge function (project integration management) influences and is influenced by all other areas
The PMBOK’s 9 Knowledge areas

30. The first four knowledge areas are Core Functions
Remember this?
The first four knowledge areas are Core Functions

31. The next four knowledge areas are Facilitating Processes
Integration
Management
Time Management
Cost Management
Scope Management
Quality Management
HR Management
Risk Management
Communication Management
Procurement Management
The next four knowledge areas are Facilitating Processes

32. HR Management Integration Management Time Management Cost Management
Scope Management
Quality Management
HR Management
Risk Management
Communication Management
Procurement Management
Project Human Resource Management
Concerned with making effective use of the people involved with the project
Processes include:
human resource planning
acquiring the project team
developing the project team
managing the project team
Outputs include:
project organization charts, staffing management plan, resource histogram etc…
HR Management

33. Risk Management Integration Management Time Management Cost Management
Scope Management
Quality Management
HR Management
Risk Management
Communication Management
Procurement Management
Project Risk Management
Identifying, analyzing, and responding to risks related to the project
Processes include:
risk management planning
risk identification
qualitative risk analysis
quantitative risk analysis
risk response planning
risk monitoring and control
Outputs include:
risk management plan, contingency plans etc…
Risk Management

34. Communications Management
Integration
Management
Time Management
Cost Management
Scope Management
Quality Management
HR Management
Risk Management
Communication Management
Procurement Management
Project Communications Management
Involves generating, collecting and storing project information
Processes include:
communications planning
information distribution
performance reporting
managing stakeholders
Outputs include:
communications management plan, status reports, performance reports etc…
Communications Management

35. Procurement Management
Integration
Management
Time Management
Cost Management
Scope Management
Quality Management
HR Management
Risk Management
Communication Management
Procurement Management
Project Procurement Management
Involves acquiring goods and services for a project from outside the organization
Processes include:
planning purchases and acquisitions
planning contracting
requesting seller responses
selecting sellers
administering the contract
closing the contract
Outputs include:
contract, statement of work etc…
Procurement Management

36. Integration Management – pulling it all together
Time Management
Cost Management
Scope Management
Quality Management
HR Management
Risk Management
Communication Management
Procurement Management
Project Integration Management
Involves coordinating all the other knowledge areas throughout a project’s life cycle.
Processes include:
develop project charter
develop the preliminary project scope statement
develop the project management plan
direct and manage project execution
monitor and control the project work
perform integrated change control
close the project
Outputs include:
project plan, change control system etc…
Integration Management – pulling it all together

37. What if it’s not Integrated?
Scope Management
Time Management
Cost Management
Integration
Management
Quality Management
HR Management
Problems resulting from the use of piecemeal Project Management Systems
Do not tie together the overall strategies of the firm
Fail to prioritize selection of projects by their importance of their contribution to the firm
Not integrated throughout project life cycle
Do not match project planning and controls with organizational culture to make appropriate adjustments in support of project
Procurement Management
Communication Management
Risk Management

38. In Integrated process management systems all the parts are inter-related, a change in one of the parts will influence the whole.
Mission, objectives and strategies are set to meet the needs of the customer.
External environmental factors: political, social, economic and technological
Internal environmental factors: strengths and weaknesses such as management, facilities, financial conditions etc.
Figure 1.2 Integrated Management of Projects (Gray & Larson, 2006, p13)

39. Which ones are most important for projects?
Technical skills
People Skills
Budgeting, Scheduling, Documenting
Leading, Motivating, Listening, Empathising
Which ones are most important for projects?

40. Figure 1.3 Technical and Sociocultural Dimensions of Project Management (Gray & Larson, 2006, p13)