1. 1 INEN 261: Week 1 Chapter 1: Projects in Contemporary Organizations Presented by: Jasim Alnahas

2. Chapter Learning Outcomes If you complete the given assignments for this Chapter you will: Be able to define the word project. Understand the role of project management in project execution. Understand project characteristics. Understand how a project progresses and the end results of a managed project. 1-2

3. Why worry about Project Management? Projects are increasingly the way we get work done Managing a project is somewhat different than managing routine work A body of knowledge (BoK) is growing up around Project Management In this course we will try to expose you to some of this information 1-3

4. 1-4 Introduction Rapid growth in project management In the past, most projects were external  Building a new skyscraper  New ad campaign  Launching a rocket Growth lately is in internal projects  Developing a new product  Opening a new branch  Improving the services provided

5. 1-5 How Project Management Developed? Credit for the development of project management goes to the military  Navy’s Polaris program  NASA’s Apollo space program  Development of “smart bombs” and “missiles” Project management has found wide acceptance in industry It has many applications outside of construction  Managing legal cases  Managing new product releases

6. 1-6 Forces Fostering Project Management Main forces in driving the acceptance of project management:  Exponential growth of human knowledge  Growing demand for a broad range of complex goods and services  Increased worldwide competition All of these contribute to the need for organizations to do more and to do it faster

7. 1-7 Project Management is also Getting Smaller More people are seeing the advantages of project management techniques The tools have become cheaper The techniques are becoming more widely taught and written about

8. 1-8 Three Project Objectives: The “Triple Constraint” Time Cost Scope Time, cost, and performance are all related to a project Figure 1-1

9. 1-9 Project Success Project efficiency Impact on the customer Business impact on the organization Opening new opportunities for the future

10. 1-10 Project Manager Project manager is the key individual on a project Project manager is like a mini-CEO

11. The Project Management Institute Membership  250 chapters in over 70 countries  Pittsburgh at http://www.pittsburghpmi.org/ http://www.pittsburghpmi.org/ Global Standards  Standards ensure a basic project management framework is applied consistently worldwide. 13 global standards (including Program and Portfolio Management) A Guide to the Project Management Body of Knowledge (PMBOK® Guide)—Fourth Edition in Circulation Credentials (Increasingly needed for engineering positions  Project Management Professionals (PMP®)  Certified Associates in Project Management (CAPM®)  Program Management Professional (PgMP®)  PMI Scheduling Professional (PMI-SP®)  PMI Risk Management Professional (PMI-RMP®) 1-11

12. 1-12 Trends in Project Management Achieving strategic goals Achieving routine goals Improving project effectiveness Virtual projects Dynamic and quasi-projects

13. 1-13 Recent Changes in Managing Organizations Consensual management Systems approach Projects are established in order to accomplish set goals

14. 1-14 The Definition of a “Project” “A temporary endeavor undertaken to create a unique product, service, or result.” (PMI) Defining some similar terms  Program: A set of projects  Projects: Needed to achieve Program objectives  Task: An element of a project  Work packages: Smaller than a task

15. Visual Definitions of terms Program Project A Project B Project C Task 1 Task 2 Task 3 Task 4 Work Package 1 1-15

16. Characteristics of a Project Importance: Important enough in the eyes of senior management Scope: One time activity with set of well defined end results Life cycle with a finite due date: Have a start, a growth phase, maturity, decline and end Interdependencies: Projects are overlaid over other activities in the organization Uniqueness: Always some differences. They are not routine work. Resources: Has personnel as well as other resources Conflict: Competition for resources 1-16

17. 1-17 Why Project Management? The main purpose for initiating a project is to accomplish some goal Project management increases the likelihood of accomplishing that goal Project management gives us someone (the project manager) to spearhead the project and to hold accountable for its completion

18. 1-18 Negative Side to Project Management Greater organizational complexity Higher probability organizational policy will be violated Says managers cannot accomplish the desired outcome Conflict

19. 1-19 The Project Life Cycle Figure 1-3. We will quantify this curve and use it to develop a project monitoring strategy slow-rapid-slow

20. 1-20 Time Distribution of Project Effort Figure 1-4 Time distribution of project effort is characterized by slow-rapid-slow

21. ENGR5030 21 Project Management Life Cycle DefinitionPlanningImplementationDelivery Level of effort 1. Goals 2. Specifications 3. Scope 4. Responsibilities 5. Teams 1. WBS 2. Budgets 3. Resources 4. Risks 5. Schedule 1. Status reports 2. Change Orders 3. Quality Audits 4. Contingencies 1. Train user 2. Transfer documents 3. Release resources 4. Reassign staff 5. Lessons learned 1-21

22. In all phases of the Project Life Cycle the Project Manager is trying to meet the same 3 goals: Meet performance goals Meet schedule commitments Meet budget constraints 1-22

23. The Project Life Cycle It is essential for the Project Manager and team to understand the characteristics of the life cycle curve for their project The distinction between the two life cycles plays a critical role in the development of budgets and schedules for the project 1-23

24. The Project Life Cycle Risk during project life cycle  With most projects there is some uncertainty about the ability to meet project goals  Uncertainty of outcome is greatest at the start of a project  Uncertainty decreases as the project moves toward completion 1-24

25. 1-25 Risk During at the Start of the Life Cycle Figure 1-6 Cost variation grows as one moves further away from the time of the estimate

26. 1-26 Risk During the Life Cycle Figure 1-7 Uncertainty decreases as the project moves toward completion because we refine our estimates

27. 1-27 Part I: Project Initiation Projects in Contemporary Organizations Strategic Management and Project Selection The Project Manager Managing Conflict and the Art of Negotiation The Project in the Organizational Structure

28. 1-28 Part II: Project Planning Project Activity and Risk Planning Budgeting: Estimating Costs and Risks Scheduling Resource Allocation

29. 1-29 Part III: Project Execution Monitoring and Information Systems Project Control Project Auditing Project Termination

30. Summary of Chapter 1 A Project is a temporary endeavor undertaken to create a unique product, service or result. The three prime objectives of project management are: 1. To meet specified performance 2. To do it within specified costs 3. Complete on schedule Projects are characterized by a singleness of purpose, a definite life cycle, complex interdependencies, some or all unique elements, and an environment of conflict 1-30

31. Summary of Chapter 1 (continued) Projects often start slow, build up speed while using considerable resources, and then slow down as completion nears As progress is made on a project, there becomes less uncertainty in what the final deliverable will achieve in meeting project goals 1-31