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Introduction: Why Project Management?
Chapter 1
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http://www.acentre.com/cartoons_projects.html
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1. Understand why project management is becoming such a powerful and popular practice in business.
2. Recognize the basic properties of projects, including their definition.
3. Understand why effective project management is such a challenge.
4. Differentiate between project management practices and more traditional, process-oriented business functions.
5. Recognize the key motivators that are pushing companies to adopt project management practices.
Learning Goals
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6. Understand and explain the project life cycle, its stages, and the activities that typically occur at each stage in the project.
7. Understand the concept of project “success,” including various definitions of success, as well as the alternative models of success.
8. Understand the purpose of project management maturity models and the process of benchmarking in organizations.
9. Identify the relevant maturity stages that organizations go through to become proficient in their use of project management techniques.
Learning Goals
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Examples of projects◦ Chunnel between England and France◦ Introduce Windows 7◦ Passing a college course◦ Olympics
These are examples of project management used to; improve operations, respond rapidly to changes, achieve breakthroughs, streamline development, manage the rising challenges
A critical component of successful organizations and employees today
“Projects, rather than repetitive tasks, are now the basis for most value-added in business”
-Tom Peters
Introduction
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Considered to be any series of activities and task that:◦ Are complex, one-time processes◦ Developed to resolve a clear goal or set of goals◦ Consume resources; time, money, people, etc.◦ Constrained by budget, schedule and resources◦ Are customer focused
A project is a temporary endeavor undertaken to create a unique product, service, or result.
-PMBOK® Guide –Fourth Edition
What is a Project?
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Project Definitions SummarizedA project can be considered any series of activities and tasks that have:Specific objectives to be completed within
certain specifications,Defined start and end dates,Funding limits,Human and nonhuman resources, andMultifunctional focus.
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1. Ad-hoc endeavors with a clear life cycle.◦ Predetermined timeline◦ Clear beginning and end
2. Building blocks in the design and execution of organizational strategies.
3. Responsible for the newest and most improved products, services, and organizational processes.
4. Provide a philosophy and strategy for the management of change.
5. Project management entails crossing functional and organizational boundaries.
◦ Interrelated Tasks◦ Involve People
General Project Characteristics
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6. The traditional management functions of planning, organizing, motivation, directing, and control apply to project management.
7. The principal outcomes of a project are the satisfaction of customer requirements within the constraints of technical, cost, and schedule objectives.
8. Projects are terminated upon successful completion of performance objectives.
◦ Fixed Budget◦ Unique and Specific Deliverable (Product, Service, or Result)
General Project Characteristics
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Process vs. Project Work
Project Takes place outside
the normal, process-oriented world
Unique and separate from routine, process-driven work
Continually evolving
Process• Ongoing, day-to-day
activities to produce goods and services
• Use existing systems, properties, and capabilities
• Typically repetitive
A project is a temporary endeavor undertaken to create a unique product, service, or result.
-PMBOK® Guide
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The purpose of operational tasks is to carry out day-to-day activities and sustain the business while the purpose of a project is to meet specific objectives.
Operational vs. Project Work
Process Management vs. Project Management (Table 1.1)
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Process (day-to-day activity)
1. Repeated process or product
2. Several objectives
3. On-going
4. More homogeneous
5. Systems in place
6. Performance, cost, & time known
7. Part of the line organization
8. Bastions of established practice
9. Supports status quo
Project (unique activity)
1. New process or product
2. One objective
3. One shot – limited life
4. More heterogeneous
5. Systems must be created
6. Performance, cost & time less
certain
7. Outside of line organization
8. Violates established practice
9. Upsets status quo
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To help organizations achieve their strategic goals.
Due to pressures organizations find themselves facing:
◦ Shortened product life cycles.◦ Narrow product launch windows.◦ Increasingly complex and technical products.◦ Emergence of global markets.◦ Economic period marked by low inflation.
Why are Projects Important?
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Skilled in areas of◦ Leadership◦ Planning◦ Interpersonal skills◦ Communication◦ Conflict negotiation◦ Presentation skills◦ Risk taking◦ Time management
Role functions◦ Provide leadership◦ Provide motivation◦ Facilitate the work◦ Maintain focus◦ Maintain commitment◦ Influence the
organization◦ Use resources
efficiently
What is the Project Manager?
The person responsible for meeting the project objectives.
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Initiate the Project Develop Project Management Plan Direct and Manage Project Execution Monitor and Control Project Work Perform Integrated Change Control Close Project
Project Manager Key Responsibilities
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Hard Skills Soft SkillsManaging technical issues
PlanningContractingBudgeting
Measuring performanceMonitoring project quality
Analyzing risks
CommunicatingNegotiatingLeadership
Problem solvingConflict resolution
Team buildingPolitical and cultural awareness
Skills Needed by Project Managers
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What are your strengths and weaknesses?
Are you a leader or a manager?
Are you proactive or reactive?
Project Manager ExerciseQuick Self-Evaluation
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“Project management is the process of the application of knowledge, skills, tools, and techniques to project activities to meet project requirements.”
- PMBOK® Guide –Fourth Edition)
It is accomplished through the application and integration of the project management process of ◦ Initiating ◦ Planning ◦ Executing◦ Monitoring◦ Controlling
What is Project Management?
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The Project Management Process
Initiating Planning
Controlling Executing
Closing
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Innovative, produces new ideas and new products
Geared toward accomplishing a specific goal Provides known dedicated resources Aimed at customer satisfaction
Side note:◦ Can be used to find future company leaders: Will
show a persons ability to manage both technical and human challenges
Advantages to Using Project Management
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Won’t work on our projects Too time consuming Just busy work Too complicated Rigid/inflexible technique Cost too much Not necessary, we’re doing okay without it
Typical Objections to Using Project Management
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Program is “a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.” -PMBOK® Guide –Fourth Edition
What is a Program?
Common Objective
Program
Project 1 Project 2 Project 3
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Process ManagementProject ManagementProgram ManagementPortfolio Management
Scope of Project Management
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Conceptualization - the development of the initial goal and technical specifications.
Planning – all detailed specifications, schedules, schematics, and plans are developed.
Execution – the actual “work” of the project is performed.
Termination – project is transferred to the customer, resources reassigned, project is closed out.
Project Life Cycle
Collectively, these four phases make up the genericproject life cycle.
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The Project Phases
Conceptualization Termination
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Select Project Define Scope Develop Project Relationship Perform Needs Analysis Define Requirements Create Project Charter Analyze Benefit-to-Cost Ratio Determine Net Present Value and Internal
Rate of Return Get Project Approval
Conceptualization Task
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Develop Specifications Design Reviews Write Standard of Work (SOW) Build a Schedule Develop Work Breakdown Structure (WBS) Allocate Resources Build the Team Configure the Budget Plan for Procurement Assess Change Control Process
Planning Task
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Update Requirements Manage Change Control Delegate the Work Manage the Team Monitor the Project Complete Tasks Analyze Variances Report Status
Execution Task
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Deliver Product Document Lessons Learned Make Payments Verify Customer Satisfaction Celebrate Recognize and Reward Team Members
Termination Task
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A project life cycle is “a collection of generally sequential and sometimes overlapping project phases whose name and number are determined by the management and control needs of the organization.” -PMBOK® Guide –Fourth Edition
Project Life Cycle
Project Life Cycles
Man
Hou
rs
Conceptualization Planning Execution Termination
Fig 1.3 Project Life Cycle Stages
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Project Life Cycles and Their Effects
Conceptualization Planning Execution Termination
Uncertainty
Client Interest
Project Stake $
Creativity
Resources
Client
Acceptance
Quadruple------------------
Schedule Performance
Budget
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Triple Constraint of Project Success
Success
Managing project
constraints involves aconstantly changing balance.
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Software & hardware projects fail at a 65% rate
Over half of all IT projects become runaways
Up to 75% of all software projects are cancelled
Only 2.5% of global businesses achieve 100% project success
Average success of business-critical application development projects is 35%
Project Success Rates
We should not overestimate the benefits to be gained from project management while underestimating the commitment required to
make it work.
Remember: 94.35% of
all statistics are
fabricated
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List four factors that contribute to the success or failure of a project.
Class Exercise
Succeed Fail
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Possible Answers
Succeed Fail
Sound project management processes
Projects tied to the organization’s strategic and business goals
Senior management commitment and support
Detailed requirements Skilled and appropriately
aligned team members Clearly defined roles and
responsibilities Realistic schedule
Lack of project requirements Lack of defined or clear and
concise requirements Lack of senior management
sponsorship and commitment
Inadequate project planning Absences of user
involvement through out the project
Lack of business ownership
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Clear understanding of the goals and objectives
Clear understanding of the customer requirements
Involvement of clients and management Realistic estimates and schedules Day-to-day control of the project Effective communication
Project Critical Success Factors
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Four Dimensions of Project Success
Project Completion
Time
Importance
1ProjectEfficiency
4Preparing forThe Future
2Impact onCustomer
3 Business Success
Short term Long termLeast
Most
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Allows organizations to benchmark the best practices of successful project management firms
Shows a relative assessment of an organizations project management development
Project management maturity models (rubric style) see Table 1.3 page 21◦ Center for business practices◦ Kerzner’s project management maturity model◦ ESI International’s project framework◦ SEI’s capability maturity model integration
Developing Project Management Maturity
Rubric – categorizes the specific level of performance expected for several levels of quality.
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Project Management MaturityGeneric Model
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0
0.5
1
1.5
2
2.5
3Project Scheduling
Structural Support forProject Management
Portfolio Management
Coaching, Auditing andEvaluating Proejcts
Control Practices
Project StakeholderManagement
Networking BetweenProjects
Personnel Development forProjects
a useful way to display multivariate observations
the length of each ray is made proportional to the size of that variable
a.k.a a Radar Chart
can be easily created in MS Excel
Spider Web Diagram
Project Elements and Text Organization
FIGURE 1.11 Organization of Textbook 42
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1. What are some of the principle reasons why project management has become such a popular business tool in recent years?
2. What do you see as being the primary challenges to introducing a project management philosophy to most organizations? That is, why is it difficult to shift to a project-based approach in many companies?
3. What are the advantages and disadvantages to using project management?
4. What are the key characteristics all projects possess?5. Describe the basic elements of the project life cycle. Why is an
understanding of the life cycle relevant for our understanding of projects?
6. Think of a successful project and an unsuccessful project with which you are familiar. What would you say distinguishes the two, both in terms of the process used to develop them and their outcomes?
Chapter 1Review and Discussion
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7. Consider the Expedition Everest case: What are the elements in Disney’s approach to developing their theme rides that you find particularly impressive? How can a firm like Disney balance the need for efficiency and smooth development of projects with the desire to be innovative and creative? Based on this case, what principles appear to guide their development process?
8. Consider the six criteria for successful IT projects. Why is IT project success often so difficult to assess? Make a case for some set of factors being more important than others.
9. As organizations seek to become better at managing projects, they often engage in benchmarking with other companies in similar industries. Discuss the concept of benchmarking. What are its goals? How does benchmarking work?
10. Explain the concept of a project management maturity model. What purpose does it serve?
11. Compare and contrast the four project management maturity models shown in Table 1.3.
Chapter 1Review and Discussion