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1-1
ELC 347 project management
Week 2
1-2
Agenda
• Contracts • New Schedule• Assignment 1 posted in WebCT
– Due in one week
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Introduction: Why Project Management?
Chapter 1
© 2007 Pearson Education
1-4
Introduction
• Examples of projects– Split the atom– Chunnel between England and France– Introduce Windows XP
“Projects, rather than repetitive tasks, are now the basis for most value-added in business”
-Tom Peters
1-5
What is a Project?
Project• Take place outside the
process world• Unique and separate
from normal organization work
Process• Ongoing, day-to-day
activities• Use existing systems,
properties, and capabilities
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.
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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
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General Project Characteristics (1/2)
• Ad-hoc endeavors with a clear life cycle
• 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
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General Project Characteristics (2/2)
• 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 constraints
• Terminated upon successful completion
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Process & Project Management (Table 1.1)
Process
1. Repeat process or product
2. Several objectives
3. On-going
4. People are homogeneous
5. Systems in place
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
6. Performance, cost & time less
certain
7. Outside of line organization
8. Violates established practice
9. Upsets status quo
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Information Technology Project “Success”
• Software & hardware projects fail at a 65% rate
• Over half of all IT projects become runaways
• Up to 75% of all software projects are cancelled
• Average cost overrun is 45%; schedule overrun is 63%; with only 67% of originally contracted features
• 47% of IT projects delivered but not used, 29% paid for but not delivered; 19% abandoned
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Happens more often than most people think!
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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
1-13
3 Gorges Dam
18,000 workers and a $73 billion cost estimate, idea in 1920’s, to be completed in 2009
http://www.chinapage.com/3gorge/3gorge.html
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Project Life CyclesMan Hours
Conceptualization Planning Execution Termination
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Project Life Cycles and Their Effects
Conceptualization Planning Execution Termination
Uncertainty
Client Interest
Project Stake
Creativity
Resources
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Determinants of Project Success
Success
Budget
Client
Acceptance
Schedule Performance
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Six Criteria for IT Project Success
• System quality
• Information quality
• Use
• User satisfaction
• Individual Impact
• Organizational impact
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Four Dimensions of Project Success
Project
Completion
Time
Importance
1
Project
Efficiency
4
Preparing for
The Future
2
Impact on
Customer
3
Business Success
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Atkinson Model
Iron triangle
Information System
Benefits
(Organization)
Benefits
(Stakeholders)Cost
Quality
Time
Maintainability
Reliability
Validity
Quality
Use
Improved efficiency
Improved effectiveness
Increased Profits
Strategic goals
Organization learning
Reduced Waste
Stratified users
Social and environmental Impact
Personal Development
Professional learning, Contractors’ profits
Capital suppliers. content
Project team, economic
Impact to surrounding Community
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Using Maturity Models
• Determines Organizational adaptation of Best Practices– Analyze and assess– Benchmark– Change– Re-Measure
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0 Not defined or poor1 Defined but substandard2 Standardized3 Industry leader or cutting edge
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Spider Web Diagram
0
0.5
1
1.5
2
2.5
3Project Scheduling
Structural Support forProject Management
Portfolio Management
Coaching, Auditing andEvaluating Proejcts
Control Practices
Project StakeholderManagement
Networking BetweenProjects
Personnel Development forProjects
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Developing Project Management Maturity
Project management maturity models
– Center for business practices
– Kerzner’s project management maturity model
– ESI International’s project framework
– SEI’s capability maturity model integration
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Project Management MaturityGeneric Model
Low Maturity
Ad hoc process, no common language, little support
Moderate MaturityDefined practices, training programs,
organizational support
High Maturity
Institutionalized, seeks continuous
improvement
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Project Elements and Text Organization
1-26http://www.pmi.org/prod/groups/public/documents/info/default.asp