Chapert 1. intro to PM

7/17/2019 Chapert 1. intro to PM

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1

Chapter 1:

Introduction to ProjectManagement



2

Learning Objectives

• Understand the growing need or better projectmanagement! especia""# or inormation

techno"og# projects

• $%p"ain what a project is and provide e%amp"eso inormation techno"og# projects

• &escribe what project management is and

discuss 'e# e"ements o the project managementramewor'



(

Learning Objectives

• &iscuss how project management re"ates to

other discip"ines

• Understand the histor# o project management

• &escribe the project management proession!

inc"uding recent trends in project management

research! certiication! and sotware products



)

Project Management *tatistics

• +he U,*, spends -2,( tri""ion on projects ever# #ear! anamount e.ua" to one/.uarter o the nation0s gross

domestic product &P3,

• +he wor"d as a who"e spends near"# -14 tri""ion o its-)4,5 tri""ion gross product on projects o a"" 'inds,

• More than si%teen mi""ion peop"e regard project

management as their proession6 on average! a project

manager earns more than -72!444 per #ear,8

8PMI! +he PMI Project Management 9act oo'! *econd $dition! 2441

PMI Project Management Institute 3



;

More Inormation

on Project Management

• More than ha" a mi""ion new inormation techno"og#

I+3 app"ication deve"opment projects were initiated

during 2441! up rom (44!444 in 2444,8

• 9amous business authors and consu"tants are stressingthe importance o project management, <s +om Peters

writes in his boo'! Reinventing Work: the Project 50!

=+o win toda# #ou must master the art o the project>?

8+he *tandish roup! =C@<O* 2441: < Aecipe or *uccess?



B

• I+ projects have a terrib"e trac' record < 1DD; *tandish roup stud# C@<O*3 ound that

on"# 1B,2E o I+ projects were successu" and over

(1E were cance"ed beore comp"etion! costing over

-71 in the U,*, a"one

• +he need or I+ projects 'eeps increasing

In 2444! there were (44!444 new I+ projects

In 2441! over ;44!444 new I+ projects were started

Motivation or *tud#ing Inormation

+echno"og# I+3 Project Management



<dvantages o Using 9orma" Project

Management

• etter contro" o inancia"! ph#sica"! and humanresources

• Improved customer re"ations• *horter deve"opment times

• Lower costs• @igher .ua"it# and increased re"iabi"it#• @igher proit margins

• Improved productivit#• etter interna" coordination• @igher wor'er mora"e



Fhat Is a ProjectG• < project is =a temporar# endeavor underta'en

to accomp"ish a uni.ue product or service?

PMOH uide 2444! p, )3

• <ttributes o projects

uni.ue purpose

temporar#

re.uire resources! oten rom various areas

shou"d have a primar# sponsor andJor customer

invo"ve uncertaint#


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*amp"es o I+ Projects

• Korthwest <ir"ines deve"oped a new reservations#stem ca""ed AesKet see case stud# on companion

Feb site at www,course,comJmisJschwa"be3

• Man# organiations upgrade hardware! sotware!and networ's via projects

• Organiations deve"op new sotware or enhance

e%isting s#stems to perorm man# businessunctions

• Kote: =I+ projects? reers to projects invo"ving

hardware! sotware! and networ's



+he +rip"e Constraint

• $ver# project is constrained in dierent wa#s b# its

*cope goa"s: Fhat is the project tr#ing to accomp"ishG

+ime goa"s: @ow "ong shou"d it ta'e to comp"eteG

Cost goa"s: Fhat shou"d it costG

• It is the project manager0s dut# to ba"ance these

three oten competing goa"s



9igure 1/1, +he +rip"e Constraint o

Project Management



+he 2441 *tandish roup Aeport *howed

Decided Improvement in Project *uccess

• Time overruns signifcantly decreased to163% compared to 222%

• Cost overruns were down to 145%

compared to 18%• !e"uired #eatures and #unctions were up

to 6$% compared to 61%

• $8&&& '()( pro*ects were success#ul

compared to 28&&&• 28% o# +T pro*ects succeeded compared to

16%


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Fh# the ImprovementsG

T,e reasons #or t,e increase in success#ulpro*ects vary(-

. T,e average cost o# a pro*ect ,as /een moret,an cut in ,al#(

. 0etter tools ,ave /een created to monitor andcontrol progress

. 0etter silled pro*ect managers wit, /ettermanagement processes are /eing used(

-T,e )tandis, roup C) 2&&17 !ecipe #or)uccess 2&&19


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Fhat is Project ManagementG

Project management is =the app"ication o

'now"edge! s'i""s! too"s! and techni.ues to

project activities in order to meet project

re.uirements? PMI8! Project Management od#o Hnow"edge PMOH uide3! 2444! p, B3

8+he Project Management Institute PMI3 is an internationa"

proessiona" societ#, +heir web site is www,pmi,org,


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9igure 1/2, Project Management

9ramewor'


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Project *ta'eho"ders

• *ta'eho"ders are the peop"e invo"ved in oraected b# project activities

• *ta'eho"ders inc"ude

the project sponsor and project team support sta

customers

users supp"iers

opponents to the project



D Project Management Hnow"edge

<reas

• Hnow"edge areas describe the 'e# competenciesthat project managers must deve"op ) core 'now"edge areas "ead to speciic project

objectives scope! time! cost! and .ua"it#3

) aci"itating 'now"edge areas are the means throughwhich the project objectives are achieved humanresources! communication! ris'! and procurementmanagement3

1 'now"edge area project integration management3aects and is aected b# a"" o the other 'now"edgeareas



Project Management +oo"s and

+echni.ues

• Project management too"s and techni.ues assist project

managers and their teams in various aspects o project

management

• *ome speciic ones inc"ude Project Charter! scope statement! and F* wor' brea'down

structure3 scope3

antt charts! networ' diagrams! critica" path ana"#sis! critica"

chain schedu"ing time3 Cost estimates and earned va"ue management cost3

*ee +ab"e 1/1 on p, 11 or man# more


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@ow Project Management Ae"ates to

Other &iscip"ines

• Much o the 'now"edge needed to manage

projects is uni.ue to the discip"ine o project

management

• Project mangers must a"so have 'now"edge and

e%perience in

genera" management

the app"ication area o the project



@istor# o Project Management

• *ome peop"e argue that bui"ding the $g#ptian p#ramids was a project! as was bui"ding thereat Fa"" o China

• Most peop"e consider the Manhattan Project to be the irst project to use =modern? projectmanagement

• +his three/#ear! -2 bi""ion in 1D)B do""ars3 project had a separate project manager and atechnica" manager



*amp"e antt Chart

+he F* is on the "et! and each tas'0s start and inish date

are shown on the right using a ca"endar timesca"e, $ar"# antt

Charts! irst used in 1D15! were drawn b# hand,



*amp"e Ketwor' &iagram

$ach bo% is a project tas' rom the F*, <rrows show dependencies

between tas's, +he bo"ded tas's are on the critica" path, I an# tas's on the

critica" path ta'e "onger than p"anned! the who"e project wi"" s"ip

un"ess something is done, Ketwor' diagrams were irst used in 1D;7 on the

Kav# Po"aris project! beore project management sotware was avai"ab"e,

* " $ i P j M



2(

*amp"e $nterprise Project Management

+oo"

In recent #ears! organiations have been ta'ing advantage o sotware

to he"p manage their projects throughout the enterprise,



2)

+he Project Management Proession

• +he job o I+ Project Manager is in the "ist o

the top ten most in demand I+ s'i""s

• Proessiona" societies "i'e the Project

Management Institute PMI3 have grown

tremendous"#

• Project management research and

certiication programs continue to grow

+ b" 1 2 + + M i & d I+



2;

+ab"e 1/2, +op +en Most in &emand I+

*'i""sRank IT Skill/Job Average Annual Salary

1 *L &atabase <na"#st -74!BB)

2 Orac"e &atabase <na"#st -75!1))

( CJCNN Programmer -D;!72D

) isua" asic Programmer -5B!D4(

; $/commerceJava &eve"oper -7D!1B( B Findows K+J2444 $%pert -74!B(D

5 FindowsJava &eve"opert -D(!57;

7 *ecurit# <rchitect -7B!771

D Project Manager -D;!51D

14 Ketwor' $ngineer -72!D4B Pau" Qiv! =+he +op 14 I+ *'i""s in &emand!? "oba" Hnow"edge Febcastwww.globalknowledge.com3 11J24J24423,

P j M H " d



2B

Project Management Hnow"edge

Continues to row and Mature

• PMI hosted their irst research conerence in une

2444 in Paris! 9rance! and the second one in

*eatt"e in u"# 2442

• +he PMOH uide 2444 is an <K*I standard

• PMI0s certiication department earned I*O D444

certiication

• @undreds o new boo's! artic"es! and presentationsre"ated to project management have been written

in recent #ears



25

Project Management Certiication

• PMI provides certiication as a ProjectManagement Proessiona" PMP3

• < PMP has documented suicient project

e%perience! agreed to o""ow a code o ethics!and passed the PMP e%am

• +he number o peop"e earning PMP certiication

is increasing .uic'"#• PMI and other organiations are oering newcertiication programs see <ppendi% 3

th i PMP C tii ti 1DD(



27

rowth in PMP Certiication! 1DD(/

2442



2D

$thics in Project Management

• $thics is an important part o a""

proessions

• Project managers oten ace ethica"di"emmas

• In order to earn PMP certiication!

app"icants must agree to the PMP code o proessiona" conduct



(4

Project Management *otware

• # 244(! there were hundreds o dierent products to assistin perorming project management

• +hree main categories o too"s e%ist: Low/end too"s: @and"e sing"e or sma""er projects we""! cost under

-244 per user Midrange too"s: @and"e mu"tip"e projects and users! cost -244/;44 per user! Project 2444 most popu"ar

@igh/end too"s: <"so ca""ed enterprise project managementsotware! oten "icensed on a per/user basis

• Project 2442 now inc"udes a separate version or enterprise project management see <ppendi% < or detai"s on Project24423

R C < " P j t M t t



Rou Can <pp"# Project Management to

Man# <reas

• Project management app"ies to wor' as we"" as

persona" projects

• Project management app"ies to man# dierent

discip"ines I+! construction! inance! sports!

event p"anning! etc,3

• Project management s'i""s can he"p in ever#da#

"ie

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