PM 01 - Introduction to Project Management


Published on

Published in: Business, Technology

PM 01 - Introduction to Project Management

  1. 1. Project Management: A Managerial Approach<br />Chapter 1 – Projects in Contemporary Organizations<br />
  2. 2. Overview<br />Project Management Growth Factors<br />Project Aspects<br />Project Criteria<br />Project Life Cycle<br />Project Management Profession<br />
  3. 3. Introduction<br />Much of project management developed by the military<br />Navy’s Polaris program<br />NASA’s space program<br />Strategic defense initiative<br />Project management has found wide acceptance in industry External vs internal to organisation<br />It has many applications outside of construction<br />Managing legal cases<br />Managing new product releases<br />
  4. 4. Forces Of Project Management<br />Forces driving Project Management:<br />1. exponential expansion of human knowledge -> dev, prod & dist.<br />2. growing demand for a broad range of complex, sophisticated, customized goods and services -> product design an integ. & inherent part of prod and dist<br />3. evolution of worldwide competitive markets for the production and consumption of goods and services -> what, when and how to distribute output<br />4. Expansion of global markets<br /> Team-based problem solving v. individual <br />All of these contribute to the need for organizations to do more and to do it faster<br />Project management is one way to do more faster<br />
  5. 5. Projects Tend to be Large<br />Projects tend to be large<br />The Channel Tunnel, or Chunnel<br />Denver International Airport<br />Panama Canal expansion project<br />Three Gorges Dam, China<br />Projects are getting larger over time<br />Flying: balloons  planes  jets  rockets  reusable rockets<br />The more we can do, the more we try to do<br />
  6. 6. Project Management Also Getting Smaller<br />More people are seeing the advantages of project management techniques<br />The tools are become cheaper<br />The techniques are becoming more widely taught and written about<br />
  7. 7. The Professionalism of Project Management<br />Complexity of problems facing the project manager<br />Growth in number of project oriented organizations<br />The Project Management Institute (PMI) was established in 1969<br />By 1990 it had 7,500 members<br />1995, over 17,000 members<br />1998--exploded to over 44,000 members<br />This exponential growth is indicative of the rapid growth in the use of projects <br />Importance of PMI as a force in the development of project management as a profession<br />
  8. 8. Project Manager<br />Project manager is the key individual on a project<br />Project manager is like a mini-CEO<br />While project manager always has responsibility, may not have necessary authority<br />
  9. 9. Trends in Project Management<br />Achieving strategic goals<br />Achieving routine goals<br />Improving project effectiveness<br />Virtual projects<br />Quasi-projects<br />
  10. 10. Organizational Imperatives<br />Traditional hierarchical management declining<br />Consensual management increasing<br />Increasing reliance on systems engineering<br />Projects integral to organizational strategy<br />
  11. 11. The Definition of a “Project”<br />Must make a distinction between terms:<br />Program - an exceptionally large, long-range objective that is broken down into a set of projects<br />Task - set of activities comprising a project<br />Work Packages - division of tasks<br />Work Units - division of work packages<br />A specific, finite task to be accomplished<br />
  12. 12. The Definition of a “Project”<br />Definition used by PMI:<br />
  13. 13. Project Management A Working Definition<br />Project:<br />A problem with a known solution scheduled for completion—unique and non-routine activities<br />Project Management:<br />The science and art of solving the problem within predetermined time and resource parameters<br />
  14. 14. Characteristics of a Project<br />Temporary<br />Have a supported purpose/importance<br />Performance specifications (form, fit, function)<br />Have a life cycle with finite due date<br />Interdependencies<br />Uniqueness<br />Resource requirements and tradeoffs<br />Stakeholder Conflict<br />
  15. 15. Quasi-Projects and Fuzzy Goals<br />Tasks without Specific Targets<br />No Who, What, When, Where, How Much<br />Implied Performance, Cost, Time Constraints<br />“Projects” to Determine Project Scope<br />Warning: If these Become Projects, Expect Delays, Cost Overruns, Dissatisfied Customers<br />
  16. 16. Objectives of a Project<br />Project Objectives:<br />Performance<br />Time<br />Cost<br />Expectations of clients inherent part of the project specifications<br />There are ancillary (process) goals:<br />Improving the organisation’s project management competency & methods<br />Individual managerial experience gained<br />The health of the project team and the organisation<br />Environment<br />
  17. 17. Objectives of a Project<br />3 Project Objectives:<br />
  18. 18. Why Project Management?<br />The main purpose for initiating a project is to accomplish some goal<br />Project management increases the likelihood of accomplishing that goal<br />Project management gives us someone (the project manager) to spearhead the project and to hold accountable for its completion<br />
  19. 19. Why Project Management?<br />Companies have experienced:<br />Better customer relations<br />Shorter overall delivery times<br />Lower costs and higher profit margins<br />Higher quality and reliability<br />Higher worker morale<br />
  20. 20. Why (not) Project Management?<br />Companies have also experienced some negatives:<br />Greater organizational complexity<br />Increased likelihood of organizational policy violations<br />Higher costs<br />More management difficulties<br />Low personnel utilization<br />Says managers cannot accomplish the desired outcome<br />Conflict<br />
  21. 21. The Project Life Cycle<br />Stages of a Conventional Project:<br />Slow beginning<br />Buildup of size<br />Peak<br />Begin a decline<br />Termination<br />
  22. 22. The Project Life Cycle<br />
  23. 23. The Project Life Cycle<br />Time distribution of project effort is characterized by slow-rapid-slow<br />
  24. 24. Definition<br />Planning<br />Implementation<br />Delivery<br />Level of effort<br />1. Goals<br />2. Specifications<br />3. Scope<br />4. Responsibilities<br />5. Teams<br />1. WBS<br />2. Budgets<br />3. Resources<br />4. Risks<br />5. Schedule<br />1. Status reports<br />2. Change Orders<br />3. Quality Audits<br />4. Contingencies<br />1. Train user2. Transfer documents3. Release resources4. Reassign staff5. Lessons learned<br />Project Management Life Cycle<br />
  25. 25. Proactive Project Life Cycle<br />High<br />Project Manager Roles and Responsibilities<br />Level<br />of <br />Value<br />of<br />Effort<br />Change Management System<br />Closed-Loop Planning-Monitor-Control System<br />Project Evaluation (Audit) Process<br />Low<br /> Define Plan Implement Delivery<br />Scope WBS/OBS/Schedule Resource (Re)allocation “Learn Curve”<br /> Tradeoffs Detailed Budget Cost Containment Final Report<br />
  26. 26. The Project Life Cycle<br />Projects also exist which do not follow the conventional project life cycle<br />Comprised of subunits that have little use as a stand alone unit, yet become useful when put together<br />
  27. 27. The Project Life Cycle<br />Unlike 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)<br />
  28. 28.
  29. 29. The Project Life Cycle<br />Risk during project life cycle<br />With most projects there is some uncertainty about the ability to meet project goals<br />Uncertainty of outcome is greatest at the start of a project<br />Uncertainty decreases as the project moves toward completion<br />
  30. 30. Project Life Cycle:Reduce Uncertainty of Cost Estimate<br />
  31. 31. END<br />