Chapter

Chapter One
One

Introduction to Project
Management

Chapter
Chapter Objectives
Objectives
1. Understand the Importance of Projects and
Project Management.
2. Define Projects and discuss project constraints
3. Define Project Management and its Importance
for doing business nowadays.
4. Introduce Project Management Knowledge
Areas.
5. Introduce Project Life Cycle.
6. Understand the Importance of Project
management Integration.
12

Week
Week 1:
1: Modern
Modern Project
Project Management
Management
What
What is
is aa Project?
Project?
Project Defined
A complex, nonroutine, one-time effort limited by time,
budget, resources, and performance specifications
designed to meet customer needs.
A project is a temporary endeavor undertaken to
accomplish a unique purpose.
An activity with a fixed start and end point, managed with
finite resources, involving change and often achieved by
the collective effort of the team of people
A project is a sequence of unique, complex, and
connected activities. Having one goal or purpose that must
be completed by a specific time, within budget, and
according to specification (Artto, 2002)
13

Attributes
Attributes of
of Projects
Projects
Major Characteristics of a Project (Attributes)
1.Importance: The most crucial attribute of a project is that
it must be important enough in the eyes of senior
management to justify setting up a special organizational
unit outside the routine structure of the organization.
2.Uniqueness: has an established objective (unique
purpose). Involves doing something never been done before.
3.Defined Life Cycle: Has a defined life span with a
beginning and an end (temporary).
4.Performance: A project is usually a one-time activity with a
well-defined set of desired end results.
5. Has specific time, cost, and performance requirements.
14

Attributes
Attributes of
of Projects
Projects
Major Characteristics of a Project (Attributes)
6.

7.

Interdependencies: Projects often interact with other projects being

carried out simultaneously by their parent organization. Require acrossthe-organizational participation (require resources from different areas).
Conflict: Projects compete with functional departments and other
projects for resources and personnel.
Conflicts between customers and the project team over
requirements.
Conflicts within the project team over approach and process.
Conflicts between the project manager and his/her management
over cost and schedule.
Conflicts between project managers and other managers on who
controls the resources that the project manager needs.

8.
9.

should have a primary sponsor and/or customer

involve uncertainty

15

Comparison
Comparison of
of Routine
Routine Work
Work with
with Projects
Projects
Routine, Repetitive Work

Projects

Taking class notes

Writing a term paper

Daily entering sales receipts into

the accounting ledger

Setting up a sales kiosk for a

professional accounting meeting

Responding to a supply-chain
request

Developing a supply-chain
information system

Practicing scales on the piano

Writing a new piano piece

Routine manufacture of an Apple

iPod

Designing an iPod that is

approximately 2 X 4 inches,
interfaces with PC, and
stores 10,000 songs

Attaching tags on a manufactured

product

Wire-tag projects for GE and

Wal-Mart

16

Three
Three Major
Major Constraints
Constraints
Every project is constrained in different ways by
its
Scope goals: What is the project trying to
accomplish?
Time goals: How long should it take to complete?
Cost goals: What should it cost?

It is the project managers duty to balance these

three often competing goals

17

Three
Three Major
Major Constraints
Constraints

18

Programs
Programs versus
versus Projects
Projects
Program Defined
A series of coordinated, related, multiple projects that
continue over an extended time and are intended to
achieve a goal.
A higher level group of projects targeted at a common
goal.
Program: A group of related projects managed in a
coordinated way to obtain benefits and control not
available from managing them individually.*
Process a series of steps needed to perform a routine activity
(e.g. purchasing). A project may contain many processes.
*PMI, A Guide to the Project Management Body of Knowledge (PMBOK Guide)
19

Programs
Programs versus
versus Projects
Projects

110

What
What is
is Project
Project Management?
Management?
Project management is the application of
knowledge, skills, tools, and techniques to
project activities in order to meet project
requirements (PMI*, Project Management
Body of Knowledge (PMBOK Guide), 2000, p.
6)
*The Project Management Institute (PMI) is an
international professional society. Their web
site is www.pmi.org.
111

Project
Project Management
Management Framework
Framework

112

Project
Project Stakeholders
Stakeholders
Stakeholders are the people involved in or
affected by project activities
Stakeholders include
Project sponsor
Project manager
Project team
Support staff
Customers
Users
Suppliers
Opponents to the project
113

99 Project
Project Management
Management Knowledge
Knowledge Areas
Areas
Knowledge areas describe the key
competencies that project managers must
develop
4 core knowledge areas lead to specific project
objectives (scope, time, cost, and quality)
4 facilitating knowledge areas are the means through
which the project objectives are achieved (human
resources, communication, risk, and procurement
management
1 knowledge area (project integration management)
affects and is affected by all of the other knowledge
areas
114

Project
Project Management
Management Tools
Tools and
and Techniques
Techniques
Project management tools and techniques
assist project managers and their teams in
various aspects of project management
Some specific ones include
Project Charter and WBS (scope)
Gantt charts, network diagrams, critical path
analysis, critical chain scheduling (time)
Cost estimates and earned value
management (cost)

115

Project
Project Portfolio
Portfolio Management
Management
Many organizations support an emerging
business strategy of project portfolio
management:
Organizations group and manage projects as a
portfolio of investments that contribute to the entire
enterprises success.

116

Major
Major Functions
Functions of
of Portfolio
Portfolio Management
Management
Oversee project selection.
Monitor aggregate resource levels and skills.
Encourage use of best practices.
Balance projects in the portfolio in order to represent
a risk level appropriate to the organization.
Improve communication among all stakeholders.
Create a total organization perspective that goes
beyond silo thinking.
Improve overall management of projects over time.

117

Project
Project Life
Life Cycle
Cycle

FIGURE 1.1
118

: Iterative & Overlapping

LE V E L O F AC T I V I T Y

Executing
Process

PROJECT
ST ART

Planning
Process

Initiating
Process

Closing
Process
Controlling
Process

TI ME

PROJECT
FINISH

PHASES OF THE PROJECT LIFE CYCLE

Proprietary - PMI Pittsburgh

Knowledge
Knowledge Areas
Areas and
and Life
Life Cycle
Cycle

FIGURE 1.1
120

The
The Challenge
Challenge of
of Project
Project Management
Management
The
The Project
Project Manager
Manager
Job descriptions vary, but most include responsibilities such as planning,
scheduling, coordinating, and working with people to achieve project goals.
Manages temporary, non-repetitive activities and frequently acts
independently of the formal organization.
Marshals resources for the project.
Is linked directly to the customer interface.
Provides direction, coordination, and integration to the project
team.
Is responsible for performance and success of the project.
Must induce the right people at the right time to address the
right issues and make the right decisions.

121

Fifteen
Fifteen Project
Project Management
Management Job
Job Functions*
Functions*
1. Define scope of project.
2. Identify stakeholders,
decision-makers, and
escalation procedures.
3. Develop detailed task list
(work breakdown structures).
4. Estimate time requirements.
5. Develop initial project
management flow chart.
6. Identify required resources
and budget.

7. Evaluate project requirements.

8. Identify and evaluate risks.
9. Prepare contingency plan.
10. Identify interdependencies.
11. Identify and track critical
milestones.
12. Participate in project phase
review.
13. Secure needed resources.
14. Manage the change control
process.
15. Report project status.

122

Suggested
Suggested Skills
Skills for
for Project
Project Managers
Managers
Project managers need a wide variety of skills.
They should:
Be comfortable with change.
Understand the organizations they work in and with.
Lead teams to accomplish project goals.
Project managers need both hard and soft skills.
Hard skills include product knowledge and knowing how
to use various project management tools and techniques.
Soft skills include being able to work with various types of
people.
123

Suggested
Suggested Skills
Skills for
for Project
Project Managers
Managers
Communication skills: Listens, persuades.
Organizational skills: Plans, sets goals, analyzes.
Team-building skills: Shows empathy, motivates,
promotes esprit de corps.
Leadership skills: Sets examples, provides vision
(big picture), delegates, positive, energetic.
Coping skills: Flexible, creative, patient,
persistent.
Technology skills: Experience, project
knowledge.
124

The
The Importance
Importance of
of Project
Project Management
Management
Factors leading to the increased use
of project management:
Compression of the product life cycle
Knowledge explosion
Triple bottom line (planet, people, profit)
Corporate downsizing
Increased customer focus
Small projects represent big problems

125

More
More Advantages
Advantages of
of Project
Project Management*
Management*
Bosses, customers, and other stakeholders do not
like surprises
Good project management (PM) provides
assurance and reduces risk
PM provides the tools and environment to plan,
monitor, track, and manage schedules, resources,
costs, and quality
PM provides a history or metrics base for future
planning as well as good documentation
Project members learn and grow by working in a
cross-functional team environment
*Knutson, Joan, PM Network, December 1997, p. 13

126

Benefits
Benefits of
of an
an Integrative
Integrative Approach
Approach
to
to Project
Project Management
Management
Integration (or centralization) of project
management provides senior management with:
An overview of all project management activities
A big picture of how organizational resources are used
A risk assessment of their portfolio of projects
A rough metric of the firms improvement in managing
projects relative to others in the industry
Linkages of senior management with actual project
execution management
127

Integrated
Integrated Project
Project Management
Management Systems
Systems
Problems resulting from the use of piecemeal
project management systems:
Do not tie together the overall strategies of the firm.
Fail to prioritize selection of projects by their
importance of their contribution to the firm.
Are not integrated throughout the project life cycle.
Do not match project planning and controls with
organizational culture to make appropriate
adjustments in support of project endeavors.

128

Integrated
Integrated Management
Management of
of Projects
Projects

FIGURE 1.2
129

Project
Project Management
Management Office
Office (PMO)
(PMO)
A PMO is an organizational group responsible for coordinating the
project management function throughout an organization.
Possible goals include:

Collect, organize, and integrate project data for the entire

organization.
Develop and maintain templates for project documents.
Develop or coordinate training in various project
management topics.
Develop and provide a formal career path for project
managers.
Provide project management consulting services.
Provide a structure to house project managers while they
are acting in those roles or are between projects.
130

The
TheTechnical
Technical
and
andSociocultural
Sociocultural
Dimensions
Dimensions
of
ofthe
theProject
Project
Management
Management
Process
Process

FIGURE 1.3
131

An
An Overview
Overview of
of Project
Project Management
Management 5e.
5e.

132