Project Management Chapter 1 and chapter 2 Rosetti


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Project Management Intro

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Project Management Chapter 1 and chapter 2 Rosetti

  1. 1. CHAPTER ONE Modern Project Management Copyright © 2014 McGraw-Hill Education. All Rights Reserved. PowerPoint Presentation by Charlie Cook
  2. 2. What is a Project? • Project Defined –Complex, nonroutine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs. • Major Characteristics of a Project –Established objective. –Defined life span with a beginning/end. –Cross functional/multidisciplinary participation –Usually involves doing something never done before. –Specific time, cost, and performance requirements. • Program vs. Project 1–2
  3. 3. Project Life Cycle FIGURE 1.1 1–3
  4. 4. The Challenge of Project Management • The Project Manager –Manages temporary, non-repetitive activities and frequently acts independently of the formal organization. • Marshals resources for the project. • Is linked directly to the customer interface. • Provides direction, coordination, and integration to the project team. • Is responsible for performance and success of the project. –Must induce the right people at the right time to address the right issues and make the right decisions. 1–4
  5. 5. The Technical and Sociocultural Dimensions of the Project Management Process FIGURE 1.3 1–5
  6. 6. The Strategic Management Process: An Overview • Strategic Management –Requires every project to be clearly linked to strategy. • Why? –Provides focus of firm’s future direction. • Responding to changes in the external environment— environmental scanning • Allocating scarce resources of the firm to improve its competitive position—internal responses to new programs –Requires strong links among mission, goals, objectives, strategy, and implementation. 2–6
  7. 7. Four Activities of the Strategic Management Process • Mission/Vision • Internal and external environmental scan (SWOT) • Set long-range goals and objectives. • Analyze and formulate strategies to reach objectives. (SMART) • Implement strategies through projects 2–7
  8. 8. Competitive Platforms Overall Low-Cost Provider Broad Differentiation Best-Cost Provider Focused Low-Cost Michael Porter Focused Differentiation
  9. 9. Lost Cost Provider Strategies: Essential Elements • Make the achievement of meaningful lower costs the key theme. • Include features and services in program offerings that are only essential • Find approaches to achieve a cost advantage in ways difficult for rival institutions to copy or match. KEYS TO SUCCESS • Scrutinize each cost-creating activity • Use knowledge about cost drivers to manage costs downward in each expenditure category • Find ways to restructure “value chain” to eliminate nonessential work steps and lowvalue activities and programs • Work diligently to create a cost-conscious culture • Aggressively pursue investments in resources and capabilities that promise to drive costs out of the “value chain”
  10. 10. Broad Differentiation Strategies: Essential Elements • Incorporate differentiating features that cause customers to prefer one organization over those of rivals • Find ways to differentiate that create value that are not easily matched or cheaply copied by rivals • Keep the cost of achieving differentiation below the higher price that can be charged KEYS TO SUCCESS The most appealing approaches to differentiation are those That are hardest for rivals to match or imitate That customers will find most appealing Best choices to gain a longer-lasting, more profitable competitive edge Innovation Technical superiority Superior Quality and Service Unique competitive capabilities
  11. 11. Best Value: Essential Elements • Combine a strategic emphasis on low-cost with a strategic emphasis on differentiation Deliver upscale at a lower cost Give customers more value for the money • Deliver superior value by meeting or exceeding expectations • Be the low-cost provider, good-to-excellent attributes, use cost advantage to underprice competitors KEYS TO SUCCESS Capability to incorporate attractive program features at a lower cost than rivals Capability to create good-to-excellent quality at a lower cost than rival Capability to develop programs that delivers good-to-excellent performance at a lower cost than rivals Capability to provide attractive services at a lower cost than rivals
  12. 12. Focused or Niche Strategy: Essential Elements • Involve concentrated attention on a narrow piece of the total student market • Serve niche buyers better than rival institutions • Choose a market niche where students have distinctive preferences, special requirements, or unique needs • Develop unique capabilities to serve needs of target student segment KEYS TO SUCCESS Achieve lower costs than rivals in serving a well-defined buyer segment (i.e., a focused low-cost strategy) or Offerings appealing to the unique preferences of a well-defined segment (i.e., a focused differentiation strategy)
  13. 13. A Portfolio Management System 1-5% 5-30% 50-75% 2–13
  14. 14. A Portfolio Management System • RFP Process –Gathering projects for review • Selection Criteria –Financial models: payback, net present value (NPV) –Non-financial models: projects of strategic importance to the firm. • Multi-Weighted Scoring Models –Use several weighted selection criteria to evaluate project proposals. 2–14
  15. 15. Multi-Criteria Selection Models • Checklist Model – Uses a list of questions to review potential projects and to determine their acceptance or rejection. – Fails to answer the relative importance or value of a potential project and doesn’t to allow for comparison with other potential projects. • Multi-Weighted Scoring Model – Uses several weighted qualitative and/or quantitative selection criteria to evaluate project proposals. – Allows for comparison of projects with other potential projects 2–15
  16. 16. Project Screening Matrix FIGURE 2.3 2–16
  17. 17. Balancing the Portfolio for Risks and Types of Projects • Bread-and-butter Projects – Involve evolutionary improvements to current products and services. • Pearls – Represent revolutionary commercial opportunities using proven technical advances. • Oysters – Involve technological breakthroughs with high commercial payoffs. • White Elephants – Showed promise at one time but are no longer viable. 2–17