Project Management: A Managerial Approach

Projects in Organizations

Copyright 2012 John Wiley & Sons, Inc.

Chapter 1

Projects in Contemporary Organizations

Copyright 2012 John Wiley & Sons, Inc.

What is a Project?
A planned undertakingof related activities to reach an objective that has a beginning and an end.

1-3

Project Environment

One to many individuals involved

Time to completion can range from days to years

1-4

Projects

Temporary (have a specific beginning and end)

Organizational projects are prioritized for consideration and selection Projects require senior management support Projects are lead by a project manager Project members often come and go

1-5

Stakeholders of a Project
1.

Project Sponsor

Provides executive support Leads and manages the project Provide technical and support expertise Those that are directly or indirectly affected by the proposed project Competitors and business partners impacted by the project outcome
1-6

2.

Project Manager

3.

Project Team Members

4.

Organization Employees

5.

Community

Project Manager
A person with a diverse set of skills management, leadership, technical, conflict management, and customer relationship who is responsible for initiating, planning, executing, controlling, monitoring, and closing down a project.

1-7

The Outsourcing/Offshore Options

India is the largest supplier

By 2013 U.S. companies are projected to spend $51 billion dollars on the outsourcing of software and services

1-8

Examples of Project Failure

FedEx began an ambitious business-to-business (B2B) project designed to integrate its massive supply chain. Two years later, the project broke ground; however, after only another two years, the project was cancelled. The damage? 15$ million and four years time (CIO, 2001). The failure of a data storage project so painful that the advisory project manager asked that the name of the organization withheld was also reported in the CIO magazine article The Secret to Software Success. The damage? Eight years, ten of millions of dollars, and the loss of 35 programmers.
1-9

Project Failure
(French Study)

1-10

Top Five Causes of Project Failure

1.
2. 3. 4. 5.

Lack of attention to human

Poor project management Poor articulation of user requirements Inadequate attention to business needs and goals Failure to involve users appropriately

1-11

What is Project Management?

The application of knowledge, skills, tools, and techniques to project activities in order to meet project requirements.

Involves five process groups:

1-12

Project Management Life Cycle

Initiate potential projects are identified and evaluated in terms of importance to the organization
Plan scope, time, cost and risk management planning takes place.

Execute implementation reports.

Control project performance is measured against the project plan. Close final paper work completed and sign off by all stakeholders.

1-13

Risk During the Life Cycle

It would be a great source of comfort if one could predict with certainty, at the start of a project, how the performance, time, and cost goals would be met. In a few cases, routine projects, for instance, we can generate reasonably accurate predictions, but often we cannot. As the project actually develops, the degree of uncertainty about the final outcome is reduced. It is common to make new forecasts about project performance, time, and cost either at fixed intervals in the life of the project or when specific technological milestones are reached.

1-14

Project Management Institute (PMI)

An association designed to bring together project management professionals and systematically capture project management knowledge Publishes the Project Management Body of Knowledge (PMBOK) Sponsors the PMP Certification

1-15

PMBOK

Project Management Body of Knowledge A repository of the key project management knowledge areas

1-16

PMBOK Knowledge Areas

1-17

The Approach to Learning Project Management

Process Focus Team Focus Technology Focus

Group Support Technologies

Knowledge Management and Organizational Memory Systems

Global Focus

1-18

Forces Of Project Management

Forces driving Project Management:

1.

2.

3.

Exponential expansion of human knowledge allows an increasing number of academic disciplines to be used in solving problems associated with the development, production, and distribution of goods and services. Satisfying Growing demand for a broad range of complex, sophisticated, customized goods and services Evolution of worldwide competitive markets for the production and consumption of goods and services force us to include cultural and environmental differences in our managerial decisions about what, where, when, and how to produce and distribute output.

Team-based problem solving v. individual

The Professionalism of Project Management

Complexity of problems facing the project manager Growth in number of project oriented organizations The Project Management Institute (PMI) was established in 1969 This exponential growth is indicative of the rapid growth in the use of projects Importance of PMI as a force in the development of project management as a profession

Characteristics of a Project

Have a supported purpose/importance Performance specifications (form, fit, function) Have a life cycle with finite due date Uniqueness Resource requirements and tradeoffs

Projects and Fuzzy Goals

Tasks with Specific Targets

Who, What, When, Where, How Much Know how

Performance, Cost, Time Constraints

Objectives of a Project

Three Direct Project Objectives:

1. 2. 3.

Performance Time (due date) Cost

the concept of performance is more complex than is apparent. In addition to time, cost, and specifications, there is a fourth dimension to be considered. This fourth dimension is the expectations of the client

Why Project Management?

The basic purpose for initiating a project is to accomplish specific goals. The reason for organizing the task as a project is to focus the responsibility and authority for the attainment of the goals on an individual or small group. In spite of the fact that the PM often lacks authority at a level consistent with his responsibility, the manager is expected to coordinate and integrate all activities needed to reach the projects goals. In particular, the project form of organization allows the manager to be responsive to:

Why Project Management?

With project management, Companies have experienced:

Better customer relations Shorter overall delivery times Lower costs and higher profit margins (ROI) Higher quality and reliability
Other reported advantages include a sharper orientation toward results, better interdepartmental coordination, and higher worker morale.