Chapter 1

The World of Projects

Copyright 2009 John Wiley & Sons, Inc.

Introduction

Much of project management developed by the

military

Navys Polaris program

NASAs space program
Strategic defense initiative

Project management has found wide acceptance in

industry
It has many applications outside of construction

Managing legal cases

Managing new product releases
2

Introduction

Main forces in driving the acceptance of

project and other forms of management:
1.
2.
3.

Continued

The exponential growth of human knowledge

The growing demand for a broad range of
complex goods and services
Increased worldwide competition

All of these contribute to the need for

organizations to do more and to do it faster
Project management is one way to do more
faster
3

Projects Tend to be Large

Projects

The Channel Tunnel, or Chunnel

Denver International Airport
Panama Canal expansion project
Three Gorges Dam, China

Projects

tend to be large

are getting larger over time

Flying: balloons planes jets rockets

reusable rockets

The

more we can do, the more we try to do

4

Project Management Also Getting

Smaller
1.

2.
3.

More people are seeing the

advantages of project management
techniques
The tools are become cheaper
The techniques are becoming more
widely taught and written about
5

Main Goals of Project Management

1.
2.
3.

Time
Cost
Performance

Time, cost, and performance are all related

on a project
6

Direct Project Goals: Performance,

Cost, Time

Figure 1-1

Project Management Institute (PMI)

The

Project Management Institute is the

major project management organization
Founded in 1969
Grew from 7,500 members in 1990 to over
260,000 in 2007
The Project Management Journal and PM
Network are the leading project management
journals
8

Project Manager
Project

manager is the key individual

on a project
Project manager is like a mini-CEO
While project manager always has
responsibility, may not have necessary
authority
9

Trends in Project Management

Achieving

strategic goals
Achieving routine goals
Improving project effectiveness
Virtual projects
Quasi-projects

10

Recent Changes in Managing

Organizations
1.
2.
3.

Consensual management
Systems approach
Projects as preferred way to
accomplish goals

11

The Definition of a Project (D)

A project is a temporary endeavor undertaken to

create a unique product or service. Temporary
means that the project has an end date. Unique
means that the project's end result is different than
the results of other functions of the organization. It is
usually associated with risk taking.
A project is a temporary endeavor undertaken to
create a unique product or service (PMI, PMBOK
Guide, 2008)
12

The Definition of a Project

Modern

project management began with the

Manhattan Project
In the early days, project management was
used mainly for very complex projects
As the tools became better understood, they
began to trickle down to smaller projects
It has also moved out of just manufacturing
to services
13

Terms used in PM (D)

Program

- an exceptionally large, longrange objective that is broken down

into a set of projects
Project- temporary endeavor
Work Packages - division of tasks
(parts/elements of a project)
14

Strategy, Programs, Projects (D)

15

Major Characteristics of a Project

Importance
Performance
Life

cycle with a finite due date

Interdependencies
Uniqueness
Resources
Conflict
16

Why Project Management?

The

main purpose for initiating a project is to

accomplish some goal
Project management increases the likelihood
of accomplishing that goal
Project management gives us someone (the
project manager) to spearhead the project
and to hold accountable for its completion

17

Negative Side to Project Management

Greater

organizational complexity
Higher probability organizational policy
will be violated
Says managers cannot accomplish the
desired outcome
Conflict
18

The Project Life Cycle

Figure 1-3

19

Time Distribution of Project Effort

Figure 1-4

20

Another Possible Project Life Cycle

Figure 1-5

21

Risk During at the Start of the Life

Cycle

Figure 1-6

22

Risk During the Life Cycle

Figure 1-7

23

The Structure of this Text

Follows

the project life cycle

Some topics stand-alone
Other topics incorporated throughout

24

Part I: Project Initiation

1.
2.
3.
4.
5.

Projects in Contemporary Organizations

Strategic Management and Project
Selection
The Project Manager
Negotiation and the Management of Conflict
The Project in the Organizational Structure

25

Part II: Project Planning

6.
7.
8.
9.

Project Activity Planning

Budgeting and Cost Estimation
Scheduling
Resource Allocation

26

Part III: Project Execution

10.
11.
12.
13.

Monitoring and Information Systems

Project Control
Project Auditing
Project Termination

27