This document provides an introduction to project management. It discusses how project management developed from large military and space projects. Project management has now found wide acceptance in managing various complex tasks. The main goals of project management are to complete projects on time, within budget, and according to specifications. The Project Management Institute is the leading professional organization for project managers. A project is defined as a temporary endeavor with a clear start and end. The document outlines the typical project life cycle and discusses factors like risks that must be managed throughout the process.

1. Copyright 2009 John Wiley & Sons, Inc.
Chapter 1
Projects in Contemporary
Organizations

2. Introduction
 Much of project management developed by the
military
– Navy’s Polaris program
– NASA’s space program
– Strategic defense initiative
 Project management has found wide acceptance in
industry
 It has many applications outside of construction
– Managing legal cases
– Managing new product releases

3. Introduction Continued
 Main forces in driving the acceptance of
project and other forms of management:
1. The exponential growth of human knowledge
2. The growing demand for a broad range of
complex goods and services
3. Increased worldwide competition
 All of these contribute to the need for
organizations to do more and to do it faster
 Project management is one way to do more
faster

4. Projects Tend to be Large
 Projects tend to be large
– The Channel Tunnel, or Chunnel
– Denver International Airport
– Panama Canal expansion project
– Three Gorges Dam, China
 Projects are getting larger over time
– Flying: balloons  planes  jets  rockets 
reusable rockets

5. Main Goals of Project Management
1. Time
2. Cost
3. Performance
 Time, cost, and performance are all related
on a project

6. Direct Project Goals: Performance,
Cost, Time
Figure 1-1

7. Project Management Institute (PMI)
 The Project Management Institute is the
major project management organization
 Founded in 1969
 Grew from 7,500 members in 1990 to over
260,000 in 2007
 The Project Management Journal and PM
Network are the leading project management
journals

8. Project Manager
 Project manager is the key individual
on a project
 Project manager is like a mini-CEO
 While project manager always has
responsibility, may not have necessary
authority

9. The Definition of a “Project”
 A ‘Project’ is a temporary endeavour,
having a defined beginning and end
(usually constrained by date, but can
be by funding or deliverables).
 E.g.- hospital, freeways, new website,
movie, insurance policy etc.

10. Major Characteristics of a Project
 Importance
 Performance
 Life cycle with a finite due date
 Interdependencies
 Uniqueness
 Resources
 Conflict

11. Why Project Management?
 The main purpose for initiating a project is to
accomplish some goal
 Project management increases the likelihood
of accomplishing that goal
 Project management gives us someone (the
project manager) to spearhead the project
and to hold accountable for its completion

12. Negative Side to Project Management
 Greater organizational complexity
 Higher probability organizational policy
will be violated
 Says managers cannot accomplish the
desired outcome
 Conflict

13. The Project Life Cycle
Figure 1-3

14. Time Distribution of Project Effort
Figure 1-4

15. Another Possible Project Life Cycle
Figure 1-5

16. Risk During at the Start of the Life
Cycle
Figure 1-6

17. Risk During the Life Cycle
Figure 1-7

18. The Structure of this Course
 Follows the project life cycle
 Some topics stand-alone
 Other topics incorporated throughout
 Exercises
 Case-studies
 Tutorials

19. Part I: Project Initiation
1. Projects in Contemporary Organizations
2. Strategic Management and Project
Selection
3. The Project Manager
4. Negotiation and the Management of Conflict
5. The Project in the Organizational Structure

20. Part II: Project Planning
6. Project Activity Planning
7. Budgeting and Cost Estimation
8. Scheduling
9. Resource Allocation

21. Part III: Project Execution
10. Monitoring and Information Systems
11. Project Control
12. Project Auditing
13. Project Termination