1. Project Management in Practice Second Edition
Mantel, Meredith, Shafer, and Sutton
Prepared by
Scott M. Shafer
Wake Forest University
John Wiley and Sons, Inc.
Copyright 2005 John Wiley & Sons, Inc.

2. The World of Project Management
Chapter 1
The World of Project Management
Copyright 2005 John Wiley & Sons, Inc.

3. Copyright 2005 John Wiley & Sons, Inc.
WHAT IS A PROJECT?
Copyright 2005 John Wiley & Sons, Inc.

4. 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.
Copyright 2005 John Wiley & Sons, Inc.

5. Characteristics of Projects
Unique
Specific Deliverable
Specific Due Date
Copyright 2005 John Wiley & Sons, Inc.

6. Other Common Characteristics of Projects
Multidisciplinary
Complex
Conflict
Part of Programs
Copyright 2005 John Wiley & Sons, Inc.

7. Copyright 2005 John Wiley & Sons, Inc.
PMI Definition
“A temporary endeavor undertaken to create a unique product or service”
Project Management Institute, 2000
Copyright 2005 John Wiley & Sons, Inc.

8. PROJECT MANAGEMENT VS. GENERAL MANAGEMENT
Copyright 2005 John Wiley & Sons, Inc.

9. Skill Requirements for Effective Project Management
Conflict Resolution
Creativity and Flexibility
Ability to Adjust to Change
Good Planning
Negotiation
win-win versus win-lose
Copyright 2005 John Wiley & Sons, Inc.

10. WHAT IS MANAGED? THE THREE GOALS OF A PROJECT
Copyright 2005 John Wiley & Sons, Inc.

11. Figure 1-1: Performance, Cost, and Time Project Targets
Copyright 2005 John Wiley & Sons, Inc.

12. THE LIFE CYCLES OF PROJECTS
Copyright 2005 John Wiley & Sons, Inc.

13. Figure 1-2 The Project Life Cycle
Copyright 2005 John Wiley & Sons, Inc.

14. Figure 1-3 An Alternate Project Life Cycle
Copyright 2005 John Wiley & Sons, Inc.

15. Copyright 2005 John Wiley & Sons, Inc.
SELECTING PROJECTS
Copyright 2005 John Wiley & Sons, Inc.

16. Nonnumeric Selection Methods
The Sacred Cow
The Operating/Competitive Necessity
Comparative Benefits
Copyright 2005 John Wiley & Sons, Inc.

17. Figure 1-4 The Q-Sort Method
Copyright 2005 John Wiley & Sons, Inc.

18. Numeric Selection Methods
Financial Assessment Methods
payback period
discounted cash flow
Scoring Methods
unweighted 0-1 factor method
weighted factor scoring method
Copyright 2005 John Wiley & Sons, Inc.

19. Copyright 2005 John Wiley & Sons, Inc.
Payback Period
Copyright 2005 John Wiley & Sons, Inc.

20. Copyright 2005 John Wiley & Sons, Inc.
Discounted Cash Flow
where
I0 = the initial investment
Ft = the net cash flow in period t
k = the required rate of return or hurdle rate
Copyright 2005 John Wiley & Sons, Inc.

21. The Weighted Scoring Model
where
Si = the total score of the ith project
sij = the score of the ith project on the jth criterion
wj = the weight or importance of the jth criterion
Copyright 2005 John Wiley & Sons, Inc.

22. Confronting Uncertainty – The Management of Risk
Copyright 2005 John Wiley & Sons, Inc.

23. 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
Copyright 2005 John Wiley & Sons, Inc.

24. Can uncertainty surrounding projects ever be eliminated?
No, but it can be managed
Copyright 2005 John Wiley & Sons, Inc.

25. Copyright 2005 John Wiley & Sons, Inc.
Risk Analysis
Estimate probabilities or distributions associated with key parameters
Develop analytic or simulation model
Analyze distribution of outcomes generated by model
Copyright 2005 John Wiley & Sons, Inc.

26. Risk Analysis with Crystal Ball
Assumption Cells
Distribution Gallery
Forecast Cells
Copyright 2005 John Wiley & Sons, Inc.

27. THE PROJECT PORTFOLIO PROCESS
Copyright 2005 John Wiley & Sons, Inc.

28. 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
Copyright 2005 John Wiley & Sons, Inc.

29. The Aggregate Project Plan
Copyright 2005 John Wiley & Sons, Inc.

30. Figure 1-12 An Example Aggregate Project Plan
Copyright 2005 John Wiley & Sons, Inc.

31. Copyright 2005 John Wiley & Sons, Inc.
All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information herein.
Copyright 2005 John Wiley & Sons, Inc.