1. ITMG 494 business/it project management
Chapter One Intro to Project Management

2. Welcome Course Overview About the Professor Syllabus
iPad Project Connection
Main Class Project Deliverable – USD/SDSU/UCSD Blood Donor Challenge

3. Learning Objectives
Understand what a project is, provide examples of projects, and understand different types of projects pertaining to various industries.
Classify projects based on technology uncertainty and system scope.
Identify project life span in various industries and explain the basic six phases of a project.
Describe project management and its benefits.
Identify factors for project success and project management success
Identify factors that cause project and project management failure
Understand the growing need for better project management, especially for information technology (IT) projects
Explain what a project is, provide examples of BUSINESS/IT projects, list various attributes of projects, and describe the triple constraint of project management

4. Learning Objectives continued
Describe project management and discuss key elements of the project management framework, including project stakeholders, the project management knowledge areas, common tools and techniques, and project success
Discuss the relationship between project, program, and portfolio management and the contributions each makes to enterprise success
Understand the role of project managers by describing what they do, what skills they need, and career opportunities for IT project managers
Describe the project management profession, including its history, the role of professional organizations like the Project Management Institute (PMI), the importance of certification and ethics, and the advancement of project management software

5. Introduction What is project management?
Many organizations today have a new or renewed interest in project management
Computer hardware, software, networks, and the use of interdisciplinary and global work teams have radically changed the work environment
The world as a whole spends nearly $10 trillion of its $40.7 trillion gross product on projects of all kinds
More than 16 million people regard project management as their profession

6. Project Management statistics
The overall information and communications technology market grew by 6 percent to almost $3 trillion in 2010
In the U.S. the size of the IT workforce topped 4 million workers in 2008, and the unemployment rate for IT professionals is half the rate for the overall labor market
In 2011 the total compensation for the average senior project manager in U.S. dollars was $105,000 per year in the United States and $160,409 in Switzerland.
The number of people earning their Project Management Professional (PMP) certification continues to increase.
44 percent of employers listed project management as a skill they looked for in new college grads, behind only communication and technical skills

7. History of Project management
Project Management developed from several fields of application including construction, engineering, and defense activity
Two forefathers of project management are:
Henry Gantt, called the father of planning and control techniques (Gantt chart), and
Henri Fayol for his creation of management functions which form the foundation of the body of knowledge associated with project and program management.
Frederick Winslow Taylor's theories of scientific management. His work is the forerunner to modern project management tools including work breakdown structure (WBS) and resource allocation.
1950s: Beginning of the modern Project Management era
Prior to the 1950s, projects were managed on an ad hoc basis using mostly Gantt Charts, and informal techniques and tools.
The "Critical Path Method" (CPM) was developed as a joint venture between DuPont Corporation and Remington Rand Corporation for managing plant maintenance projects.

8. History of project management continued
"Program Evaluation and Review Technique" or PERT, was developed by Booz-Allen & Hamilton as part of the United States Navy's (in conjunction with the Lockheed Corporation) Polaris missile submarine program.
In 1956, the American Association of Cost Engineers (now AACE International; the Association for the Advancement of Cost Engineering) was formed by early practitioners of project management and the associated specialties of planning and scheduling, cost estimating, and cost/schedule control (project control).
AACE continued its pioneering work and in 2006 released the first integrated process for portfolio, program and project management (Total Cost Management Framework).
The International Project Management Association (IPMA) was founded in Europe in 1967 as a federation of several national project management associations.
IPMA maintains its federal structure today and now includes member associations on every continent except Antarctica.
IPMA offers a Four Level Certification program based on the IPMA Competence Baseline (ICB).
The ICB covers technical competences, contextual competences, and behavioral competences.
In 1969, the Project Management Institute (PMI) was formed in the USA.

9. What is a Project? Definitions: Project (characteristics-PMBOK*)
A project is finite —having specific start and completion dates—and is undertaken to create a unique product or service which brings about beneficial change or added value. This finite characteristic of projects stands in sharp contrast to processes, which are (semi) permanent functional work to repetitively produce the same product or service. Projects are delivered under certain constraints, traditionally listed as "scope," "time," and "cost.”
Temporary
Unique results
Progressive elaboration
*Project Management Institute (PMI): PMBOK = Project Management Body of Knowledge
Operations is work done to sustain the business
Projects end when their objectives have been reached or the project has been terminated
Projects can be large or small and take a short or long time to complete
Progressive elaboration The process of providing or discovering greater levels of detail as the project moves toward completion. 

10. What is a PROJECT Continued…
Is a unique activity.
Has a beginning.
Has an end – a definite end.
Has constraints and requirements.
Scope, Cost, Schedule, Resources, Performance, Value (Quality)
Has to add value.
Should have a primary customer or sponsor
Involves uncertainty

11. Project Management Definition
“Project management is the discipline of planning, organizing, and managing resources to bring about the successful completion of specific project goals and objectives. The primary challenge of project management is to achieve all of the project goals and objectives while honoring the preconceived project constraints. Typical constraints are scope, time, and budget.”
en.wikipedia.org/wiki/Project_management

12. Project Management Definition Continued
Management is defined as the act of getting people together to accomplish desired goals and objectives.
Management is composed of planning, organizing, and controlling an organization or a group of people and other needed resources to accomplish a goal.
Projects consist of many activities, and those activities are brought together to make up a project including:
Project management; and
Engineering and services of projects.
Project management is the act of collaborating people and other required resources such that the project is planned, organized, and controlled effectively to accomplish project goals and objectives.

13. What is a Project Manager?
“Project managers function as bandleaders who pull together their players each a specialist with individual score and internal rhythm. Under the leader's direction, they all respond to the same beat.” L.R. Sayles
Project managers have the responsibility of the planning, implementation, and closing of any project in a variety of industries or fields, i.e., healthcare, insurance, construction, etc.
A project manager is the person accountable for accomplishing the stated project objectives.
Key project manager responsibilities include creating clear and attainable project objectives, building the project requirements, and managing the triple constraint for projects, which is cost, time, and scope.
A project manager ensures that the key issues of cost, time, quality and above all, Executive Sponsor satisfaction, can be realized.
Project Managers are ‘Large and in charge’ – PMBOK
If project is successful, Team was awesome
If project failed, project manager is responsible

14. Project management benefits
Ensure the scope of a project as required by a customer is completely met
Provides a process that can be followed to successful completion of projects
Success from project management will inspire individuals and organizations to perform efficiently in the future
Helps individuals and organizations to map a clear strategy to complete a project successfully
Forces individuals and organizations to identify and assess all perceived risks and exposures so that they know the problems before they surface

15. Project management benefits continued
Helps individuals and organizations to know when goals and objectives cannot be achieved
Makes individuals and organizations understand and work towards their customers’ requirements thus increasing quality of the output
Creates a structure and process which enables a project to be kept under control
Motivates individuals and organizations to ensure a quality output
Helps to deliver projects successfully
Helps to measure goals and objectives
Helps individuals and organizations to save time and money

16. What is a Process vs. a Project?
Processes are:
Projects are:
On-going with no clearly defined beginning and end states
Should be customer driven
Repeatable
One way of implementing a Process Improvement or innovation
Time-bound and have a customer
Have clear beginning and end dates Longer projects are often broken down into phases or stages. Each one phase can become a project unto itself.
Follow a specific cycle of Initiation, Plan, Implement and Close
Often result in process improvement
Factors that may necessitate a project include: complexity, risk, time-sensitive, etc.
Process Improvement is the examination of a business process in order to better meet customer & quality requirements. Projects arise from this examination.
Project Management is the application of knowledge and expertise to the development and completion of a project.

17. Types of PROJECTS Computer/IT Healthcare New Product Development
Finance
Construction

18. Computer/it Projects
Include networking, infrastructure, and software design and development projects
Computer software projects include system software projects, programming software projects, and application software projects.
A team of students creates a smartphone application and sells it online
A company develops a driverless car
A small software development team adds a new feature to an internal software application for the finance department
A college upgrades its technology infrastructure to provide wireless Internet access across the whole campus

19. Healthcare projects
Projects will typically be varied in their nature, according to the needs of the client and the hospital.
Projects focus on improving patient care and service delivery while increasing innovation and efficiency.
Stakeholders may include:
Doctors, Pharmaceutical and Insurance companies.
Payers: Individuals, businesses, government organizations.
Fiscal intermediaries: MOs, and Pharmacy.
Hospitals, delivery networks, and individual clinics.
Groups who aggregate healthcare products and services.

20. NEW PRODUCT DEVELOPMENT PROJECTS
Firms use new product development process as the first stage in generating and commercializing new products to maintain or grow their market share.
The project manager’s task is to:
coordinate deployment of a product or new releases
coordinate testing of such new products and releases
coordinate pilots with potential product users.
Priority of development objectives, planned timing, sequence of development activities, major project milestones and prototypes are mechanisms for coordination among team members.

21. Construction projects
Small (home) to Large (Airports)
Construction projects are often time-consuming.
Require several phases and may involve:
financial organizations
government agencies
engineers and architects
insurance companies
attorneys
contractors, material suppliers, and builders.

22. Classification of projects
Three underlying dimensions that encompass almost all aspects of technology are complexity, interdependence, and uncertainty.
Complexity refers to the number of products or operations that are performed at the same time and the resulting degree of difficulty.
Interdependence refers to the extent to which the items or elements upon which work is performed or the work processes themselves are interrelated.
Uncertainty refers to the variability in the process of transformation of inputs to outputs or in the inputs themselves.

23. Four types of uncertainty
Type A projects rely on mature technologies for all industries to have equal access. Hence, there is no competitive advantage.
Type B projects rely on mature technologies with new modifications and new features. The goal is competitive advantage.
Type C projects use new technologies leading to new products thus providing competitive advantage.
Type D projects require development of new technologies, providing great competitive advantage.

24. Dimension of Projects Based on Technology Uncertainty
Project Type A B C D
Classification
Mature
Improvement
Integration
New Development
Description
Using existing and well tested technologies
Adapting existing well tested technologies with slight improvements
Integrating existing mature technologies
New technologies
Examples
New website
A new website with database integration and new features
SAP implementation, New hardware, Military systems
Space projects

25. Dimension of Projects Based on Complexity
Complexity Level 1 2 3
Classification
Low
Medium
High
Description
Assembling components and modules in order to perform a single function
Develop subsystems in order to perform a wide range of functions or activities
Build large systems that function as a single entity in order to achieve a common purpose
Examples
DVDs, CDs, Refrigerators
Computers, iPads, Smart phones, radar, aircraft, ships
Cloud services, a city, public transportation system

26. Project management framework/knowledge areas

27. stakeholders
Stakeholders are the people involved in or affected by project activities
Stakeholders include
the project sponsor
the project manager
the project team
support staff
customers
users
suppliers
opponents to the project

28. Project management component areas(similar to knowledge areas)

29. Project life span

30. Project life span
Project life span is a progression through a series of differing stages of development of a project. It is the total phases through which a project passes from the time it is initially conceived until the time it is either in use as a success or abandoned as a failure.
Phase 1 – Conceptualization or Pre-Feasibility
Phase 2 – Planning or Feasibility or Demonstration
Phase 3 – Design/Development
Phase 4 – Implementation/Execution/Testing
Phase 5 – Launch or Termination or Closure
Phase 6 – Post Implementation Review  

31. Phase 1: Conceptualization or Pre-Feasibility
Conceptualization: A conceptualization is an idea or thought that refers to the reflection of a targeted business function or process and how the various facets of the process or function relate to each other.
A thought process is a series of ideas, thoughts, or decisions.
How and when does this conceptualization process originate?
Pre-feasibility  study: A pre-feasibility study is a preliminary study to assess whether to conduct a full feasibility study or not.

32. Phase 2: Planning or Feasibility or Demonstration
Before the start of any major project, a complete, realistic, and accurate project plan is very important.
Project planning is the process of setting goals, developing strategies to support an organization’s strategic goals, and outlining tasks and schedules to accomplish project goals.
Planning a project assumes that the project under consideration has been approved for implementation.
The approval can result from Phase 1 conceptualization or pre-feasibility findings.
A feasibility study is a detailed study in a controlled process to identify potential problems and opportunities.

33. Phase 3: Design/Development or Development or Engineering/Manufacturing Development
Once Phase 2 is completed, Phase 3 is initiated, and takes a project from planning through construction or realization of project scope.
Design and development follows customer requirements and assesses for quality against predefined criteria.
While analysis is discovering what the requirements are, design is evaluating a number of choices and choosing the best solution.

34. Phase 4: Implementation or Execution and Testing or Production and Deployment
This is the phase where products, services, and systems are realized. After the design of a product and its components, the method of manufacturing or production is defined in this phase.
This phase usually consists of both implementation and testing of the implemented product or system.
Drawings, specifications, and contract documents that were prepared in the design phase will be implemented, software will be coded, contracts will be tendered and awarded, and construction work will be undertaken.

35. Phase 5: Launch or Termination or Closure
Project closure: Business stakeholders agree to release the product and launch the product for the user or consumer.
A project is brought to its proper completion in this phase.
This is where the business stakeholders agree to release the product and launch the product for the user or consumer.
The client’s formal acceptance is essential in this phase.
Often, lessons learned from previous project completions and installations are used in this phase.
Launch of a product or system usually combines contributions from multiple disciplines in an organization.

36. Phase 6: Post-Implementation Review
Progress and success are measured, project documents are archived, lessons learned are captured, and project activities are formally closed.
The post-implementation phase allows an organization to step back and review processes and results.
The organization will consider processes that need adjustment, highlight the most effective processes, and provide action items to improve future projects.
Post-occupancy evaluations are also used to assess the effectiveness of construction or production or implementation.

37. Project Lifecycle Define Work Project Work Report Initiate Plan
Initiator/
Stakeholder
New Team/
Owner
Project Team
Organizational
Framework
Define Work
Project Work
Report
Integrate
Initiate
Plan
Execute
Control
Close
PLAN DO
CHECK
ACT
Organizational Framework – identify project and align with strategy map, identify and provide resources, project scheduling, prioritizing, direction-setting, issue resolution, milestone reviews
Initiate – develop business case and project plan/charter, including role(s) of sponsor(s), owner(s), define problem/opportunity with supporting data, participants, success measure(s), and scope (boundaries and parameters)
Plan – develop execution steps, timeline, dependencies, milestone dates, plans for risk and risk mitigation, plans for communications and for training
Execute – do the work defined in plans
Control – hold milestone meetings with sponsors, produce reports on performance and success measure(s), identify issues, resolutions, and management (e.g. scope management)
Close – report results, determine ownership and integration into ongoing work of all affected work units, evaluate the project, summarize lessons learned, and document the process and materials developed
Integrate – implement agreements, identify ongoing roles/responsibilities, create ongoing operational measures and dashboard reporting cycles, provide training, standardize processes, and continually improve

38. Program and Project Portfolio Management
A program is “a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually” (PMBOK® Guide, Fifth Edition, 2012)
A program manager provides leadership and direction for the project managers heading the projects within the program
Examples of common programs in the IT field include infrastructure, applications development, and user support

39. Project Portfolio Management
As part of project portfolio management, organizations group and manage projects and programs as a portfolio of investments that contribute to the entire enterprise’s success
Portfolio managers help their organizations make wise investment decisions by helping to select and analyze projects from a strategic perspective

40. Figure 1-3. Project Management Compared to Project Portfolio Management

41. Best Practice
A best practice is “an optimal way recognized by industry to achieve a stated goal or objective”*
Robert Butrick suggests that organizations need to follow basic principles of project management, including these two mentioned earlier in this chapter:
Make sure your projects are driven by your strategy. Be able to demonstrate how each project you undertake fits your business strategy, and screen out unwanted projects as soon as possible
Engage your stakeholders. Ignoring stakeholders often leads to project failure. Be sure to engage stakeholders at all stages of a project, and encourage teamwork and commitment at all times
*Project Management Institute, Organizational Project Management Maturity Model (OPM3) Knowledge Foundation (2003), p. 13.

42. Project success and failure factors

43. Project failure factors
Relations with the client
Contracts and legal agreements
Politics and conflicts
Decreased Profitability
Unrealistic goals
Poor Communications
Competitive disadvantage
Client dissatisfaction
Perceived value of the project

44. Project management failure factors
Inadequate rationale, objectives, tasks, and goals
Wrong project manager
Unsupportive top management
Lack or misuse of project management techniques
Inadequate project planning
Lack of commitment to the project

45. Project management failure/success factors cont.
Factors and constraints affect either the success or the failure of projects:
Completion of project within scope or customer requirements
Completion of project within allocated budget
Completion of project within allocated schedule or period of time
Completion of project using allocated resources
Completion of project within established performance and technology standards
Completion of project to maximize project value for stakeholders

46. Project success There are several ways to define project success:
The project met scope, time, and cost goals
The project satisfied the customer/sponsor
The results of the project met its main objective, such as making or saving a certain amount of money, providing a good return on investment, or simply making the sponsors happy

47. What helps projects succeed
1. User involvement
2. Executive support
3. Clear business objectives
4. Emotional maturity
5. Optimizing scope
6. Agile process
7. Project management expertise
8. Skilled resources
9. Execution
10. Tools and infrastructure
*The Standish Group, “CHAOS Activity News” (August 2011).

48. Other success project mgmt. components
A clear definition of the project, including good rationale and alignment to corporate goals
Developing a project organizational structure with associated channels of communication, accountabilities, responsibilities, and reporting facilities
Defining project requirements from customers and establishing a project scope for success
Planning the project to include analysis of activities, and defining and developing major tasks with milestones
Planning clear and adequate communications
Evaluating risks at all stages of a project and planning to mitigate these risks
Estimating time, costs, resource requirements and performance measures, and project value
Scheduling all activities
Continuously monitoring and controlling scope, time, cost, performance factors, and project value
Implementing the project
Bringing closure to a successful project
Creating and benefiting from project value

49. Key Terms Project Components Commonly used terms Scope creep Metrics
Charter
Goals and objectives
Deliverable
Scope Definition
Requirements (business and functional)
Risks and Issues
Communication plan
Resource Identification
Work Plan (tasks, dependencies)
Change Control
Commonly used terms
Bandwidth
Vet
Scope creep
Metrics

50. Key Terms (cont.) Other People
SMART Goals (specific, measurable, attainable, realistic and timely)
LEAN Methodology
People
Sponsors, Executive Sponsors
Stakeholders
Guiding Team (CORE, PIT, and Oversight)
Work Groups
PM Tools and activities
Risk Assessment (planning)
Flow Chart
Process Flow
Business process re-engineering
Process map
Work Breakdown Structure (WBS - planning)
Timeline/Milestones (planning)
Triple Constraint/Resource Triangle (planning)

51. Roles in the project framework
Sponsor/Executive Sponsor
Guiding Team (CORE, PIT, and Oversight)
Project Manager
Operational Staff:
Adviser/Subject Experts/Business Analyst
Operational Manager
Key Resource
Work Groups
Project Team Leader
Team/Member

52. PM Skills: Key to success
Planning (I – P)
Communication (I – P – E– C)
Resource Management (E – C)
Team Management (P – E – C)
Scope Management (E – C)
Schedule Management (P – E)
What are the soft skills that are needed? We will go over these in each of the Phases!
Initiate – Plan – Execute – Close

53. Summary
A project is a unique activity that adds value, has beginning and end dates, and has constraints that include scope, cost, schedule, resource, performance, and value (customer satisfaction).
Using technological uncertainty and technological complexity as two dimensions, we can classify projects.
In general, there are six distinct phases of a project in a project life span
Organizations that work on various projects need to acquire good project management skills and techniques.
Project management is the act of collaborating people and other required resources such that the project is planned, organized, and controlled effectively to accomplish project goals and objectives.
Project success depends upon project management success. Project success is due to a good understanding and a good control of constraints.

54. Summary CONTINUED
Success and failure of projects depend upon completion of the project:
Within scope or customer requirements
Within allocated budget
Within allocated schedule or period of time
With allocated resources
With established performance standards and maximizing technology use
With maximized project value for stakeholders