3004ENG: Project Management Principles 2010

Introduction to Project Management

Krieng Panuwatwanich Griffith School of Engineering Griffith University, Queensland, Australia

What is a project?
A project is a temporary endeavour undertaken to create a unique product, service, or result A definite beginning and end A project can involve a single person, a single organisational unit, or multiple organisational units (PMI, 2008) To senior management, a project must be important enough to justify setting up a special organisational unit outside the routine organisational structure
(Meredith and Mantel, 2009)

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What is a project?
Continued

A project can create: A product that can be either a component of another item or an end item in itself; A capability to perform a service (e.g. a business function that supports production or distribution); or A result such as an outcome or document

3004ENG: Project Management Principles

Examples of projects
From your field:
Civil engineering? Electronics/Computer engineering? Architecture? Real Estate and Property Development?

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Typology of projects

(Nicholas & Steyn, 2008)

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Three project objectives

Time Cost Performance Trade-off

(Meredith and Mantel, 2009)

3004ENG: Project Management Principles

Project, Program, Portfolio

A portfolio is a collection of projects or programs and other work to facilitate effective management such that strategic business objectives can be met. A program is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.

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Project, Program, Portfolio

Continued

(PMI, 2008)

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Project, Program, Portfolio

Continued

Company Portfolio
Program Alpha
Project A1 Project A2

Program Beta Project 3

Subproject 3.1 Subproject 3.2

(Kloppenborg, 2009) 3004ENG: Project Management Principles 8

What is management?
Management is the process of planning, organising, leading and controlling the work of organisational members and of using all available organisational resources to reach specific organisational goals.

3004ENG: Project Management Principles

Brief history of management theory

Pre-industrial management (prior to 1890)
Ruling of empires, kingdoms, tribes, clans, etc. Gurus : Niccolo Machiavelli, Confucius , Sun Tzu

Scientific management (1890 1940)

Industrial revolution era management based on routinised, mechanistic processes. Famous example: Fords Model T. Guru: Frederick Taylor

Bureaucratic management (1930-1950)

Hierarchical organisation management line of work/authority/control Guru: Max Weber

Human relations (1930-today)

Focus on managing human resource (e.g. motivation, needs) Gurus : Frederick Herzberg, Abraham Maslow
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The functions of management

(Nicholas & Steyn, 2008)

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Sowhat is project management?

Project Management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. Managing a project typically includes:
Identifying requirements Addressing the various needs, concerns, and expectations of the stakeholders as the project is planned and carried out Balancing the competing project constraints, e.g. scope, quality, schedule, budget, resources, risk, etc.
(PMI, 2008)

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What is a project manager?

A manager
Directs process Gets work done through other people by initiating and directing actions.

A project manager
The person assigned by the performing organisation to achieve the project objectives A PM requires both soft skills and hard skills

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PM and Organisations
An organisation - An organization is a co-operative goal realizing unit in which participants consciously enter into a mutual relationship and work together to attain common goals. Organising - An activity concerning the creating of effective relationships between available people, resources, and actions in order to attain certain goals

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Organisational structures

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Organisational influence on projects

(PMI, 2008)

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Organisational influence on projects

Continued

Functional Organisation

(PMI, 2008)

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Organisational influence on projects

Continued

Weak Matrix Organisation

(PMI, 2008)

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Organisational influence on projects

Continued

Balanced Matrix Organisation

(PMI, 2008)

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Organisational influence on projects

Continued

Strong Matrix Organisation

(PMI, 2008)

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Organisational influence on projects

Continued

Projectised Organisation

(PMI, 2008)

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Characteristics of project manager

A project manager heads the project organization and operates independent of the normal chain-of-command The project manager is the focal point for bringing together all efforts toward a single project objective Because each project requires a variety of skills and resources, the actual work might be performed by people from different functional areas or by outside contractors The project manager is responsible for integrating people from different functional disciplines working on the project The project manager negotiates directly with functional managers for support. Functional managers are responsible for individual work tasks and personnel within the project; the project manager is responsible for integrating and overseeing the start and completion of activities
(Nicholas & Steyn, 2008)

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Characteristics of project manager

Continued

The project focuses on delivering a particular product or service at a certain time and cost and to the satisfaction of technical requirements A project might have two chains-of-commandone vertical and functional, one horizontal and projectand people might report to both the project manager and a functional manager Decision making, accountability, outcomes, and rewards are shared among members of the project team and supporting functional units Though the project organization is temporary, the functional or subcontracting units from which it is formed are permanent Projects can originate at different places inside or outside the organization. Product development and related projects tend to emerge from marketing, whereas technological applications originate from R&D, and so on.
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When to use Project Management?

Five criteria: 1. Unfamiliarity 2. Magnitude of the effort 3. Changing environment 4. Interrelatedness 5. Reputation of the organisation
(Nicholas & Steyn, 2008)

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Project, Program, Portfolio Management

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(PMI, 2008)

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Review questions
What is project?; and what is project management? A project is defined as a temporary endeavour undertaken to create a unique product, service, or result. If this is the case, why are many typical work/activities/products (e.g. building construction, conference organisation) still considered as projects? What are the key differences between Project, Program and Portfolio? How is project management influenced by different types of organisational structures? Explain how the role and authority of project managers vary between different types of organisational structures? If the projectised structure is suitable for effective project management, why arent all organisations structured that way?

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