1. Chapter 1 Project Management Concepts

2. 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

3. Real World Example
Vignette: Beach Town Cleanup – Avila Beach in California
The popular beach and the town’s business district had been contaminated by underground pipes from a petroleum facility.
Project management techniques were used to restore the streets, all major utilities, and the beach itself.
The remediation project was completed five months ahead of schedule! 3 3 3 3 3 3 3 3 3 3 3

4. Real World Example Vignette: The Department of Energy
Project – build the world’s largest laser to monitor and maintain nuclear warheads
Project costs soar $350 million above original estimates
Project completion delayed by two years
“Clearly we had a major project management surprise!” 4 5 5 4 5 4 4 4 4 4

5. 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

6. 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

7. 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

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

9. 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

10. 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

11. Phases of the Project Life Cycle 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

12. Phases of the Project Life Cycle 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

13. Phases of the Project Life Cycle 3
The third phase is performing the project.
Different types of resources are utilized
Results in the accomplishment of the project objective 13 19 19 13 19 13 13 13 13 13

14. Phases of the Project Life Cycle 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

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

16. 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. 16 22 22 16 22 16 16 16 16 16

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

18. 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. 18 25 25 18 25 18 18 18 18 18

19. 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 19 28 28 19 28 19 19 19 19 19