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1Chapter 1
Chapter 1:
Introduction to Project
Managementadopted from PMIs PMBOK 2000 and
Textbook : Information Technology Project Management
(author : Dr. Kathy Schwalbe)
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2Chapter 1
Contents
Project and project management definition
Motivation of studying PM
Advantages of using formal PM Triple Constraint of PM
Project Management Framework
9 Project Management Knowledge Areas
Project Management Profession
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3Chapter 1
What is a Project?
A project is a temporary endeavor
undertaken to accomplish a unique purpose
Attributes of projectsunique purpose
temporary
require resources, often from various areas
should have a primary sponsor and/or customer
involve uncertainty
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Examples of IT Projects
Northwest Airlines developed a new reservationsystem called ResNet (see chapters 11-16)
Many organizations upgrade hardware, software,
and networks via projects (see chapter 5 openingand closing case)
Organizations develop new software or enhanceexisting systems to perform many business
functions (see examples throughout the text) Note: IT projects refers to projects involving
hardware, software, and networks
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IT Projects have a terrible track record
A 1995 Standish Group study (CHAOS) found that
only 16.2% of IT projects were successful and over
31% were canceled before completion, costing over$81 B in the U.S. alone
The need for IT projects keeps increasing
In 1998, corporate America issued 200,000 new-start
application development projects
In 2000, there were 300,000 new IT projects, and
In 2001, over 500,000 new IT projects were started
Motivation for Studying Information
Technology (IT) Project Management
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Advantages of Using Formal
Project Management Better control of financial, physical, and humanresources
Improved customer relations
Shorter development times Lower costs
Higher quality and increased reliability
Higher profit margins Improved productivity
Better internal coordination
Higher worker morale
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The Triple Constraint
Every project is constrained in differentways by itsScope goals: What is the project trying to
accomplish?Time goals: How long should it take to
complete?
Cost goals: What should it cost?
It is the project managers duty to balancethese three often competing goals
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Figure 1-1. The Triple Constraint of
Project Management
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Problems of poor project management
The 2001 Standish Group Report Showed Decided
Improvement in IT Project Success Rates From the 1995
Study
Time overruns significantly decreased to 63% comparedto 222%
Cost overruns were down to 45% compared to 189%
Required features and functions were up to 67%
compared to 61% 78,000 U.S. projects were successful compared to 28,000
28% of IT projects succeeded compared to 16%
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Why the Improvements?
"The reasons for the increase in successfulprojects vary. First, the average cost of aproject has been more than cut in half.
Better tools have been created to monitorand control progress and better skilledproject managers with bettermanagement processes are being used.
The fact that there are processes issignificant in itself.*
The Standish Group, "CHAOS 2001: A Recipe for
Success" (2001)
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What is Project Management?
Project management is the application of
knowledge, skills, tools, and techniques to
project activities in order to meet project
requirements (PMI*, Project Management
Body of Knowledge (PMBOK Guide),
2000, p. 6)
*The Project Management Institute (PMI) is an
international professional society. Their web site is
www.pmi.org.
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Figure 1-2. Project Management
Framework
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Project Stakeholders
Stakeholders are the people involved in oraffected by project activities
Stakeholders include
the project sponsor and project team
support staff
customers
userssuppliers
opponents to the project
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9 Project Management
Knowledge Areas Knowledge areas describe the key competencies
that project managers must develop 4 core knowledge areas lead to specific project
objectives (scope, time, cost, and quality) 4 facilitating knowledge areas are the means through
which the project objectives are achieved (humanresources, communication, risk, and procurementmanagement
1 knowledge area (project integration management)affects and is affected by all of the other knowledgeareas
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Project Management Tools and
Techniques Project management tools and techniques assist
project managers and their teams in various
aspects of project management
Some specific ones include
Project Charter and WBS (scope)
Gantt charts, network diagrams, critical path analysis,
critical chain scheduling (time)
Cost estimates and earned value management (cost)
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Sample WBS for Intranet Project
in Chart Form
Concept
Design User Interface
Design Server Setup
Develop ServerSupport Infrastructure
Web Site
Design
Develop Pages
and Links
Develop
Functionality
ContentMigration/Integration
Testing
Web Site
Development
Roll Out Support
Intranet Project
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Figure 1-4. Sample Gantt Chart
The WBS is on the left, and each tasks start and finish date
are shown on the right using a calendar timescale.
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Figure 1-5. Sample Network Diagram
Each box is a project task from the WBS. Arrows show dependencies
between tasks.The bolded tasks are on the critical path. If any tasks onthe critical path take longer than planned, the whole project will slip
unless something is done.
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0
50
100
150
200
250
300
1 2 3 4 5 6 7 8 9 10 11 12
Month
$
BCWS or Cumulative Plan
ACWP or Cumulative Actual
BCWP or Cumulative EVBCWS
ACWP
BWCPSchedule Variance
Cost Variance
EAC
BAC
Sample Earned Value Chart
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More Advantages of Project
Management* Bosses, customers, and other stakeholders do not like
surprises
Good project management (PM) provides assurance andreduces risk
PM provides the tools and environment to plan, monitor,track, and manage schedules, resources, costs, and quality
PM provides a history or metrics base for future planningas well as good documentation
Project members learn and grow by working in a cross-functional team environment
*Knutson, Joan, PM Network, December 1997, p. 13
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How Project Management (PM)
Relates to Other Disciplines Much of the knowledge needed to manage
projects is unique to PM
However, project managers must also haveknowledge and experience ingeneral management
the application area of the project
Project managers must focus on meetingspecific project objectives
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Figure 1-3. Project Management and Other
Disciplines
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History of Project Management
Modern project management began with theManhattan Project, which the U.S. military led todevelop the atomic bomb
In 1917 Henry Gantt developed the Gantt chart asa tool for scheduling work in job shops
In 1958, the Navy developed PERT charts
In the 1970s, the military began using project
management software, as did the constructionindustry
By the 1990s, virtually every industry was usingsome form of project management
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The Project Management
Profession A 1996 Fortune article called projectmanagement the number one careerchoice
Professional societies like the ProjectManagement Institute (PMI) have growntremendously
Average salaries for project managersare over $81,000
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Project Management Knowledge
Continues to Grow and Mature PMI hosted their first research conference in June
2000 in Paris, France
The PMBOK Guide2000 Edition is an ANSI
standard
PMIs certification department earned ISO 9000
certification
Hundreds of new books, articles, andpresentations related to project management have
been written in recent years
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Project Management
Certification PMI provides certification as a Project
Management Professional (PMP)
A PMP has documented sufficient project
experience, agreed to follow a code of ethics, andpassed the PMP exam
The number of people earning PMP certificationis increasing quickly
PMI and other organizations are offering newcertification programs (see Appendix B)
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Figure 1-6. Growth in PMP
Certification, 1993-2000
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Project Management Software
By 2001, there were hundreds of different productsto assist in performing project management
Three main categories of tools: Low-end tools: Handle single or smaller projects well,cost under $200 per user
Midrange tools: Handle multiple projects and users, cost$200-500 per user, Project 2000 most popular
High-end tools: Also called enterprise projectmanagement software, often licensed on a per-user basis
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You Can Apply Project
Management to Many Areas
Project management applies to work as
well as personal projects
Project management applies to manydifferent disciplines (IT, construction,
finance, sports, event planning, etc.)
Project management skills can help ineveryday life
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30Chapter 1
Summary
Project and project management definition
unique purpose, temporary, require resources, sponsor support
and involve uncertainty
Motivation of studying PM
IT Projects have a terrible track record
The need for IT projects keeps increasing
Advantages of using formal PM
1. Better control of resources
(financial, physical, and human)
2. Improved customer relations
3. Shorter development times
4. Lower costs
5. Higher quality
6. Increased reliability
7. Higher profit margins
8. Improved productivity
9. Better internal coordination
10. Higher worker morale
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31Chapter 1
Summary (2)
Triple Constraint of PM time, costs and scope
Project Management Framework
stakeholder input => 9 PM knowledge areas => othertools and techniques => success project
9 Project Management Knowledge Areas core: scope, time, cost, quality
facilitating: HR, communication, risk, procurement integration
Project Management Profession