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2. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Copyright 2005 Prentice HallCh 1 -2 Agenda Questions? Any ideas for the Integrated Project? First part due September 26 Assignment 1 Posted Read Case Study 1.1, Megatech Inc., and Case Study 1.2, The It Department at Hamelin Hospital. Complete and upload the answers to the Question at the end of each case study. Make reference to the concepts presented in Chapter 1 when answering the questions. Due September 17 prior to class. Why Project Management?

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4. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 1 Learning Objectives After completing this chapter, students will be able to: Understand why project management is becoming such a powerful and popular practice in business. Recognize the basic properties of projects, including their definition. Understand why effective project management is such a challenge. Differentiate between project management practices and more traditional, process-oriented business functions. Recognize the key motivators that are pushing companies to adopt project management practices. 01-02

5. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 1 Learning Objectives After completing this chapter, students will be able to: Understand and explain the project life cycle, its stages, and the activities that typically occur at each stage in the project. Understand the concept of project “success,” including various definitions of success, as well as the alternative models of success. Understand the purpose of project management maturity models and the process of benchmarking in organizations. Identify the relevant maturity stages that organizations go through to become proficient in their use of project management techniques. 01-05

6. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Rescue of Chilean Miners 6 Source: http://framework.latimes.com/2010/10/07/chile-miner-rescue/#/0http://framework.latimes.com/2010/10/07/chile-miner-rescue/#/0

7. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Introduction Examples of projects Split the atom Tunnel under the English Channel Introduce Windows 7 8 Plan next Olympic games in London “Projects, rather than repetitive tasks, are now the basis for most value-added in business” -Tom Peters 01-07

8. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall ® Scott Adams, Inc./ Dist. By UFS, Inc.

9. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Process vs. Project Work Project Take place outside the normal, process-oriented world Unique and separate from routine, process-driven work Continually evolving Process Ongoing, day-to-day activities to produce goods and services Use existing systems, properties, and capabilities Typically repetitive A project is a temporary endeavor undertaken to create a unique product or service. PMBoK 2008 01-09

10. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Process & Project Management (Table 1.1) Process 1.Repeat process or product 2.Several objectives 3.Ongoing 4.People are homogeneous 5.Systems in place to integrate efforts 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 to integrate efforts 6.Performance, cost & time less certain 7.Outside of line organization 8.Violates established practice 9.Upsets status quo 01-10

11. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Additional Definitions 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. Buchanan & Boddy 92 Projects are goal-oriented, involve the coordinated undertaking of interrelated activities, are of finite duration, and are all, to a degree unique. Frame 95 01-011

12. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Project Definitions Summarized A project can be considered any series of activities and tasks that have: Specific objectives to be completed within certain specifications, Defined start and end dates, Funding limits, Human and nonhuman resources, and Multifunctional focus. 01-012

13. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Elements of Projects Complex, one-time processes Limited by budget, schedule, and resources Developed to resolve a clear goal or set of goals Customer-focused 01-013

14. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall General Project Characteristics Ad-hoc endeavors with a clear life cycle Ad-hoc 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 01-014

15. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall General Project Characteristics 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 objectives Terminated upon successful completion of performance objectives 01-15

16. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Project Success Rates Software & hardware projects fail at a 65% rate, Over half of all IT projects become runaways, Only 30% of technology-based projects and programs are a success. Only 2.5% of global businesses achieve 100% project success and over 50% of global business projects fail, Average success of business-critical application development projects is 32%, and Approximately 42% of the 1,200 Iraq reconstruction projects were eventually terminated due to mismanagement or shoddy construction 01-16

17. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 1- 17 Happens more often than most people think !

18. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Why are Projects Important? 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 01-18

19. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Project Life Cycles Conceptualization - the development of the initial goal and technical specifications. Planning – all detailed specifications, schedules, schematics, and plans are developed Execution – the actual “work” of the project is performed Termination – project is transferred to the customer, resources reassigned, project is closed out. 01-19

20. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Project Life Cycles Man Hours ConceptualizationPlanningExecutionTermination Fig 1.3 Project Life Cycle Stages 01-20

21. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Project Life Cycles and Their Effects FIGURE 1.4 Project Life Cycles and Their Effects 01-21

22. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Quadruple Constraint of Project Success Figure 1-6 01-22

23. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Four Dimensions of Project Success FIGURE 1.7 01-23

24. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Six Criteria for IT Project Success System quality Information quality Use User satisfaction Individual impact Organizational impact 01-24

25. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Understanding Success Criteria 01-25 Table 1.2

26. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 1- 26 0 Not defined or poor 1 Defined but substandard 2 Standardized 3 Industry leader or cutting edge

27. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Spider Web Diagram (Figure 1.8) 01-27

28. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Spider Web Diagram with Embedded Organizational Evaluation Figure 1-9 01-28

29. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Developing Project Management Maturity Project Management Maturity (PMM) Models Center for Business Practices Kerzner’s Project Management Maturity Model ESI International’s Project Framework SEI’s Capability Maturity Model Integration See Table 1.3 (page 21) in text for comparsions 01-29

30. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Center for Business Practices PMM Level 1: Initial Phase Level 2: Structure, Process, and Standards Level 3: Institutionalized Project Management Level 4: Managed Level 5: Optimizing 01-30

31. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Kerzner’s PMM Model Level 1: Common Language Level 2: Common Processes Level 3: Singular Methodology Level 4: Benchmarking Level 5: Continuous Improvement 01-31

32. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall ESI International’s Project Framework Level 1: Ad Hoc Level 2: Consistent Level 3: Integrated Level 4: Comprehensive Level 5: Optimizing 01-32

33. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall SEI’s Capability Maturity Model Integration Level 1: Initial Level 2: Managed Level 3: Defined Level 4: Quantitative Management Level 5: Optimizing 01-33

34. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Project Management Maturity Generic Model 01-34 FIGURE 1.10

35. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Determines Organizational adaptation of Best Practices Analyze and assess Benchmark Change Re-Measure Using Maturity Models 1- 35

36. TextBook organization 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

37. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Project Elements and Text Organization FIGURE 1.11 Organization of Text 01-37

38. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Project Manager Responsibilities 1. Selecting a team 2. Developing project objectives and a plan for execution 3. Performing risk management activities 4. Cost estimating and budgeting 5. Scheduling 6. Managing resources 01-38

39. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall FIGURE 1.12 Overview of the Project Management Institute’s PMBoK Knowledge Areas 01-39

40. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Summary Understand why project management is becoming such a powerful and popular practice in business today. Recognize the basic properties of projects, including their definition. Understand why effective project management is such a challenge. Differentiate between project management practices and more traditional, process-oriented business functions. Recognize the key motivators that are pushing companies to adopt project management practices. 01-40

41. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Summary Understand and explain the project life cycles, its stages, and the activities that typically occur at each stage in the project. Understand the concept of project “success,” including various definitions of success, such as the “triple constraint,” as well as alternative models of success. Understand the purpose of project management maturity models and the process of benchmarking in organizations. Identify the relevant maturity stages that organizations go through to become proficient in their use of project management techniques. 01-41

42. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 01-42