project management concepts
TRANSCRIPT
Chapter 1: Project Management Concepts
What Is a Project? What Is Project Management?
Life Cycles of Projects and Project Management
Project Stakeholders
Organizational Structure and Its Influence
Learning Objectives:
After completing this chapter, you will be able to:
Differentiate between projects and operational work
Describe the main concepts of project management
Explain the differences between the project life cycle and
the project management life cycle
Identify project stakeholders and their influence
Compare the different types of organizational structures
What Is a Project?
A project is:
Temporary It has a definite beginning and a
definite, measurable end.
Unique The project is
undertaking something that has not been
undertaken previously. At least some aspect is
unique.
Projects embrace the concept of progressive elaboration; that is, as time goes by, you learn more about the project
as you do the work of the project.
What Is a Project?
Projects vs. Ongoing Operations
According to the PMBOK Guide:
Projects : Temporary, unique; embrace progressive elaboration
Operations : Ongoing, repetitive; do not fit all the criteria of a project
What Is Project Management?
Overlapping Disciplines
Project Managementenvironment skills
Applicationknowledge
Body of knowledge Interpersonal skills
Project Management Components
Portfolios, Programs, and Subprojects
Program
Project A Project B
Subproject Subproject Subproject Subproject
PortfolioProgram
Project A Project B
Subproject Subproject Subproject Subproject
Project Management Components
Project Management Office
What Is Project Management?
Project Management System
Life Cycles of Projects and Project Management
Project Life Cycle vs. Project Management Life Cycle
Software development project
Design Code Test Train Implement
Project management life cycle Project life cycle
Initiating Initiating Initiating Initiating Initiating
Planning Planning Planning Planning Planning
Executing Executing Executing Executing Executing
Monitoring & Monitoring & Monitoring & Monitoring & Monitoring &Controlling Controlling Controlling Controlling Controlling
Closing Closing Closing Closing Closing
Life Cycles of Projects and Project Management
Project Life Cycle vs. Product Life Cycle
Product life cycle stages:
Introduction and creation
Growth
Maturity
Decline
Projects run in the context of the product life cycle. Many projects can be undertaken throughout
the product life cycle.
Project Stakeholders
It is important to identify stakeholders.
Who is or should be involved?
Who is external to the organization?
Who has “bought in” and who hasn’t?
Who can influence the project’s performance or
outcome?
Organizational Structure and Its Influence
Matrix Functional Weak Strong Projectized
Functional Weak Strong ProjectizedMatrix
Organizational Structure and Its Influence
Functional Organization
Power resides with the functional manager. CEO
Functional Functional Functional Functional Functionalmanager manager manager manager manager
Staff Staff Staff Staff Staff
Staff Staff Staff Staff Staff
Staff Staff Staff Staff Staff
*Darkened boxes represent staff working on project activities.
Functional Organizations
Advantages and Disadvantages of Functional Structures
Advantages
Familiar structure
One-supervisor reporting structure
Clearly defined career paths
Employees as experts
Disadvantages
Employee’s job difficult to change
Need to fight for resources and project priority
Functional manager responsible for performance reviews and promotions
Competition for resources
Little or no project manager authority
No clearly defined project management career path
Organizational Structure and Its Influence
Matrix Organization Two bosses: Power resides with both functional manager and the CEOproject manager.
Functional manager
Staff
Staff
Project manager
Functional manager
Staff
Staff
Staff
Functional manager
Staff
Staff
Staff
Functional manager
Staff
Staff
Staff
Functional manager
Staff
Staff
Staff
*Darkened boxes represent staff working on project activities.
Matrix Organization
Advantages and Disadvantages of Matrix Structures
Advantages
Continued visibility of objectives
Increased support from functional managers
Increased control by project manager
Improved flexibility
Continued job after project completion
Multiple input on performance of team members
Disadvantages
Multiple bosses
Added complexity
Need for additional policies and procedures
Differing priorities or objectives
Organizational Structure and Its Influence
Projectized Organization
Power resides with project manager. CEO
Project Project Project Project Projectmanager manager manager manager manager
Staff Staff Staff Staff Staff
Staff Staff Staff Staff Staff
Staff Staff Staff Staff Staff
*Darkened boxes represent staff working on project activities.
Projectized Organization
Advantages and Disadvantages of Projectized Structures
Advantages
Clear focus on project
Project loyalty
Efficient project organization
Efficient project communication
Disadvantages
Job over at project completion
Less efficient use of resources
Duplicated job functions and facilities
The Structure of Organizations and Its Influence
Summary
Project Aspect
Organization Structure Functional
Weak Matrix
Matrix
Balanced Matrix
Strong Projectized Matrix
Project Manager Little or Authority none
Resource Little or Availability none
Project Budget Functional Controlled By manager
Limited
Limited
Functional manager
Low to moderate
Low to moderate
Mixed
Moderate to High to high almost total
Moderate to High to high almost total
Project Project manager manager
Role of the Project Manager Part-time Part-time Full-time Full-time Full-time
ProjectManagement Part-time Part-time Part-time Full-time Full-timeAdministrative Staff
*Based on the PMBOK Guide, Fourth Edition.
Knowledge Check
Concepts You Should Know
Important terms: Project: Temporary endeavor undertaken to produce a unique
product, service, or result
Subproject: Component of project identified by subdividing the project into smaller, more manageable pieces
Operations: Ongoing, repetitive work of the organization
Project management: Application of knowledge, skills, tools and techniques to project work to fulfill project requirements
Program: Interrelated group of projects and other work that are managed together to achieve efficiencies not available by managing them separately
Portfolio: Group of programs, projects, and other work managed together to meet strategic business objectives
Knowledge Check
Concepts You Should Know (cont.)
Important terms (cont.): Project management system: Aggregated collection of
processes, tools, techniques, methods, procedures, and resources assembled to manage projects
Project stakeholder: Any individual or group that meets one or more of the following requirements:
Is involved in the project Has a positive or negative interest in the project
Can exert influence over project performance or results
Knowledge Check
Concepts You Should Know (cont.) Triple constraint model:
All projects are constrained by time, cost (or resources), and scope.
Changes to one set of constraints affect remaining areas of constraint.
Project management should be focused on identifying and managing the balance among the areas of constraint.
Three life cycles:
Product life cycle: Sequence of phases that a product goes through between conception and retirement
Project life cycle: Sequence of phases of project work required to meet project requirements
Project management life cycle: Sequence of phases in the management of the work of the project (remember IPECaC)
Knowledge Check
Concepts You Should Know (cont.)
Projects generally occur within the larger product or service life cycle and often occur as the means of transitioning a product from one life cycle phase to another.
Successful project managers make connections between the following areas:
Project Management Body of Knowledge
Application area standards and regulations
Organizational environment in which the project takes place
General management skills
Interpersonal skills
Knowledge Check
Concepts You Should Know (cont.) The PMBOK Guide identifies four general organizational types:
Functional organization: Hierarchical organization in which employees are grouped based on their specialized skill set and have a single, clear boss.
Matrix organization: Structure in which the functional manager and the project manager share responsibility for determining priorities and directing the work of staff. The PMBOK Guide classifies matrix organizations as weak, balanced, or strong.
Projectized organization: Organization in which the project manager has total authority to assign priorities, apply resources, and direct the work of project staff.
Composite organization: Organization in which projects can be organized and managed in functional, matrix, or projectized ways depending on the needs of the project.
