1. MEM 612 Project Management Chapter 1 The World of Project Management

2. MEM 612 Project Management WHAT IS A PROJECT?

3. MEM 612 Project Management 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.

4. MEM 612 Project Management Characteristics of Projects Unique Specific Deliverable Specific Due Date

5. MEM 612 Project Management Other Common Characteristics of Projects Multidisciplinary Complex Conflict Part of Programs

6. MEM 612 Project Management PMI Definition “A temporary endeavor undertaken to create a unique product or service” Project Management Institute, 2000

7. MEM 612 Project Management PROJECT MANAGEMENT VS. GENERAL MANAGEMENT

8. MEM 612 Project Management Skill Requirements for Effective Project Management Conflict Resolution Creativity and Flexibility Ability to Adjust to Change Good Planning Negotiation –win-win versus win-lose

9. MEM 612 Project Management WHAT IS MANAGED? THE THREE GOALS OF A PROJECT

10. MEM 612 Project Management Figure 1-1: Performance, Cost, and Time Project Targets

11. MEM 612 Project Management THE LIFE CYCLES OF PROJECTS

12. MEM 612 Project Management Figure 1-2 The Project Life Cycle

13. MEM 612 Project Management Figure 1-3 An Alternate Project Life Cycle

14. MEM 612 Project Management SELECTING PROJECTS

15. MEM 612 Project Management Nonnumeric Selection Methods The Sacred Cow The Operating/Competitive Necessity Comparative Benefits

16. MEM 612 Project Management Figure 1-4 The Q-Sort Method

17. MEM 612 Project Management Numeric Selection Methods Financial Assessment Methods –payback period –discounted cash flow Scoring Methods –unweighted 0-1 factor method –weighted factor scoring method

18. MEM 612 Project Management Payback Period

19. MEM 612 Project Management Discounted Cash Flow where I 0 = the initial investment F t = the net cash flow in period t k = the required rate of return or hurdle rate

20. MEM 612 Project Management The Weighted Scoring Model where S i = the total score of the i th project s ij = the score of the i th project on the j th criterion w j = the weight or importance of the j th criterion

21. MEM 612 Project Management Confronting Uncertainty – The Management of Risk

22. MEM 612 Project Management 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

23. MEM 612 Project Management Can uncertainty surrounding projects ever be eliminated? No, but it can be managed

24. MEM 612 Project Management Risk Analysis Estimate probabilities or distributions associated with key parameters Develop analytic or simulation model Analyze distribution of outcomes generated by model

25. MEM 612 Project Management Risk Analysis with Crystal Ball Assumption Cells Distribution Gallery Forecast Cells

26. MEM 612 Project Management THE PROJECT PORTFOLIO PROCESS

27. MEM 612 Project Management 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

28. MEM 612 Project Management The Aggregate Project Plan

29. MEM 612 Project Management Figure 1-12 An Example Aggregate Project Plan

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