Project Management: A Managerial ApproachChapter 1 Projects in Contemporary Organizations

OverviewProject Management Growth FactorsProject AspectsProject CriteriaProject Life CycleProject Management Profession

IntroductionMuch of project management developed by the militaryNavys Polaris programNASAs space programStrategic defense initiativeProject management has found wide acceptance in industry External vs internal to organisationIt has many applications outside of constructionManaging legal casesManaging new product releases

Forces Of Project ManagementForces driving Project Management:1. exponential expansion of human knowledge dev, prod & dist.2. growing demand for a broad range of complex, sophisticated, customized goods and services product design an integ. & inherent part of prod and dist3. evolution of worldwide competitive markets for the production and consumption of goods and services what, when and how to distribute output4. Expansion of global markets Team-based problem solving v. individual All of these contribute to the need for organizations to do more and to do it fasterProject management is one way to do more faster

Projects Tend to be LargeProjects tend to be largeThe Channel Tunnel, or ChunnelDenver International AirportPanama Canal expansion projectThree Gorges Dam, ChinaProjects are getting larger over timeFlying: balloons planes jets rockets reusable rocketsThe more we can do, the more we try to do

Project Management Also Getting SmallerMore people are seeing the advantages of project management techniquesThe tools are become cheaperThe techniques are becoming more widely taught and written about

The Professionalism of Project ManagementComplexity of problems facing the project managerGrowth in number of project oriented organizationsThe Project Management Institute (PMI) was established in 1969By 1990 it had 7,500 members1995, over 17,000 members1998--exploded to over 44,000 membersThis exponential growth is indicative of the rapid growth in the use of projectsImportance of PMI as a force in the development of project management as a profession

Project ManagerProject manager is the key individual on a projectProject manager is like a mini-CEOWhile project manager always has responsibility, may not have necessary authority

Trends in Project ManagementAchieving strategic goalsAchieving routine goalsImproving project effectivenessVirtual projectsQuasi-projects

Organizational Imperatives Traditional hierarchical management decliningConsensual management increasingIncreasing reliance on systems engineeringProjects integral to organizational strategy

The Definition of a ProjectMust make a distinction between terms:Program - an exceptionally large, long-range objective that is broken down into a set of projectsTask - set of activities comprising a projectWork Packages - division of tasksWork Units - division of work packagesA specific, finite task to be accomplished

The Definition of a ProjectDefinition used by PMI:

A temporary endeavor undertaken to create a unique product or service

Project Management A Working DefinitionProject:A problem with a known solution scheduled for completionunique and non-routine activitiesProject Management:The science and art of solving the problem within predetermined time and resource parameters

Characteristics of a ProjectTemporaryHave a supported purpose/importancePerformance specifications (form, fit, function)Have a life cycle with finite due dateInterdependenciesUniquenessResource requirements and tradeoffsStakeholder Conflict

Quasi-Projects and Fuzzy GoalsTasks without Specific TargetsNo Who, What, When, Where, How MuchImplied Performance, Cost, Time ConstraintsProjects to Determine Project Scope

Warning: If these Become Projects, Expect Delays, Cost Overruns, Dissatisfied Customers

Objectives of a ProjectProject Objectives:PerformanceTimeCostExpectations of clients inherent part of the project specificationsThere are ancillary (process) goals:Improving the organisations project management competency & methodsIndividual managerial experience gainedThe health of the project team and the organisationEnvironment

Objectives of a Project3 Project Objectives:

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

Why Project Management? Companies have experienced:Better customer relationsShorter overall delivery timesLower costs and higher profit marginsHigher quality and reliabilityHigher worker morale

Why (not) Project Management?Companies have also experienced some negatives:Greater organizational complexityIncreased likelihood of organizational policy violationsHigher costsMore management difficultiesLow personnel utilizationSays managers cannot accomplish the desired outcomeConflict

The Project Life CycleStages of a Conventional Project:Slow beginningBuildup of sizePeakBegin a declineTermination

The Project Life Cycle

The Project Life CycleTime distribution of project effort is characterized by slow-rapid-slow

Project Management Life Cycle

Proactive Project Life CycleLevelof ValueofEffortLowHighDefine Plan Implement Delivery Scope WBS/OBS/Schedule Resource (Re)allocation Learn Curve Tradeoffs Detailed Budget Cost Containment Final ReportProject Evaluation (Audit) ProcessChange Management SystemProject Manager Roles and ResponsibilitiesClosed-Loop Planning-Monitor-Control System

The Project Life CycleProjects also exist which do not follow the conventional project life cycleComprised of subunits that have little use as a stand alone unit, yet become useful when put together

The Project Life CycleUnlike the more conventional life cycle, continued inputs of effort at the end of the project produce significant gains in returns (eg. Baking a cake, software project, chemical reaction project, writing a book/thesis)

The Project Life Cycle

It is essential for the Project Manager to understand the characteristics of the life cycle curve for his project

The distinction between the two life cycles plays a critical role in the development of budgets and schedules for the project

The Project Life CycleRisk during project life cycleWith most projects there is some uncertainty about the ability to meet project goalsUncertainty of outcome is greatest at the start of a projectUncertainty decreases as the project moves toward completion

Project Life Cycle:Reduce Uncertainty of Cost Estimate

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