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Copyright © 2011 The McGraw-Hill Companies, All Rights Reserved
Projects
What is Project Management?
•  Project: a series of related jobs usually
directed toward some major output and
requiring a significant period of time to
perform
•  Project management: the management
activities of planning, directing, and
controlling resources (people, equipment,
material) to meet the technical, cost, and
time constraints of a project
LO 1
Structuring Projects
•  Pure project
•  Functional project
•  Matrix project
LO 2
Pure Project
•  Advantages
–  The project manager has full authority
–  Team members report to one boss
–  Team pride, motivation, and commitment are high
•  Disadvantages
–  Duplication of resources
–  Lack of technology transfer
–  Team members have no functional area "home"
LO 2
Functional Project
LO 2
Functional Project Continued
•  Advantages
–  A team member can work on several projects
–  Technical expertise maintained in functional area
–  Critical mass of specialized knowledge
•  Disadvantages
–  Aspects of the project that are not directly related to the
functional area get short-changed
–  Needs of the client are secondary and are responded to
slowly
LO 2
Matrix Project
LO 2
Matrix Project Continued
•  Advantages
–  Better communications between functional areas
–  Duplication of resources is reduced
–  Functional “home” for team members
•  Disadvantages
–  Multiple bosses
–  Depends on project manager’s negotiating skills
LO 2
Work Breakdown Structure
•  Statement of work (SOW): a written
description of the objectives to be
achieved
•  Task: a further subdivision of a project
– Usually shorter than several months
– Performed by one group or organization
•  Work package: a group of activities
combined to be assignable to a single
organizational unit
LO 3
Work Breakdown Structure Continued
•  Project milestones: specific events on
the project
•  Work breakdown structure (WBS):
defines the hierarchy of project tasks,
subtasks, and work packages
•  Activities: pieces of work that consume
time
LO 4
Network-Planning Models
•  A project is made up of a sequence of activities that
form a network representing a project
•  The path taking longest time through this network of
activities is called the “critical path”
•  The critical path provides a wide range of scheduling
information useful in managing a project
LO 3

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Project management

  • 1. Copyright © 2011 The McGraw-Hill Companies, All Rights Reserved Projects
  • 2. What is Project Management? •  Project: a series of related jobs usually directed toward some major output and requiring a significant period of time to perform •  Project management: the management activities of planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of a project LO 1
  • 3. Structuring Projects •  Pure project •  Functional project •  Matrix project LO 2
  • 4. Pure Project •  Advantages –  The project manager has full authority –  Team members report to one boss –  Team pride, motivation, and commitment are high •  Disadvantages –  Duplication of resources –  Lack of technology transfer –  Team members have no functional area "home" LO 2
  • 6. Functional Project Continued •  Advantages –  A team member can work on several projects –  Technical expertise maintained in functional area –  Critical mass of specialized knowledge •  Disadvantages –  Aspects of the project that are not directly related to the functional area get short-changed –  Needs of the client are secondary and are responded to slowly LO 2
  • 8. Matrix Project Continued •  Advantages –  Better communications between functional areas –  Duplication of resources is reduced –  Functional “home” for team members •  Disadvantages –  Multiple bosses –  Depends on project manager’s negotiating skills LO 2
  • 9. Work Breakdown Structure •  Statement of work (SOW): a written description of the objectives to be achieved •  Task: a further subdivision of a project – Usually shorter than several months – Performed by one group or organization •  Work package: a group of activities combined to be assignable to a single organizational unit LO 3
  • 10. Work Breakdown Structure Continued •  Project milestones: specific events on the project •  Work breakdown structure (WBS): defines the hierarchy of project tasks, subtasks, and work packages •  Activities: pieces of work that consume time LO 4
  • 11. Network-Planning Models •  A project is made up of a sequence of activities that form a network representing a project •  The path taking longest time through this network of activities is called the “critical path” •  The critical path provides a wide range of scheduling information useful in managing a project LO 3