Module 1_ the Nature of Projects

8/11/2019 Module 1_ the Nature of Projects

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Annika Tidstrm

The Nature of Projects

Project Management

Department of ManagementFaculty of Business Studies


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223.9.2014University of Vaasa | Deparment of Management |

Project Management

Agenda

1. The history of projects & project management

2. Projects so what?

3. The art of project management

4. Project life cycle

5. Organizing projects


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1. The history of projects andproject managment

University of Vaasa | Department of ManagementProject Management


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423.9.2014University of Vaasa | Department of Management |

Project Management

From pyramids to businessenvironments

We are not sure what was the first project in the history however since from the beginning there are still similariti

how the projects are carried out. Research about project management is a pretty new field. First scientific article

came out in 50s.Most of the scientific work has been done within the project management field in 80s and 90s. It

a very new field altough projects have existed for ages.


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Project Management 5

Time Project characteristics

~ 2650 B.C. Construction, lasted for a long time

500-1500 A.D. Construction, aesthetic values, longtime

15th to 17th century Time & contracts

1960 CPM, PERT

1970 Organization, leadership, teams

1980 Models & computerized solutions

1990 Multi-projects, processes

2000 Creativity & learning, strategicperspectives of projects

Present Projects as parts of the businessenvironment

(Artto et al. 2011)


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2. Projects so what?



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Project Management

A project a unique activity that adds value, expends resources, has

beginning and end dates, and has constraints and requirementsthat include scope, cost, schedule performance, resources, and

value. (Vaidyanathan, 2013)

... the application of knowledge, skills, tools and techniques toproject activities in order to meet stakeholders needs and

expectations from a project. (PMBOK)... the process of integrating everything that needs tobe done as

the project evolves through its life cycle in order to meet theprojects objectives. (Peter Morris)

... the process of guiding a project from its beginning through its

performance to its closure. Project management requiresplanning, organizing, and controlling.(Portny et al. 2008)


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Project Management

a unique set of processes consisting of coordinated andcontrolled activities with start and finish dates, undertaken to

achieve an objective. Achievement of the project objective requiresdeliverables confirming to specific requirements, including

multiple constraints such as time, cost and resources.

(ISO 21 500)

A project is a unique entity formed of complex and interrelatedactivities, having a predefined goal that must be completed by aspecific time, within a budget, and according to specification.

(Artto et al. 2011)


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Project Management

Characteristics

A temporary organization

Unique and non-repetitive

A work structure and interrelated activities

A start and finish

A life-cycle

Limited by time, cost and scope

The outcome may be tangible or intangible


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Project Management

Types of projects

1. Projects delivering value-added solutions toexternal customers

2. Projects developing solutions for the companysown business

3. Investment project4. Delivery project

5. Research project

6. Development project


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2. The art of projectmanagement



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Project Management

Project management

project management is the act of collaborating with peopleusing other required resources such that a project is planned,organized and controlled effectively to accomplish its goals and

objectives. (Vaidyanathan, 2013)

... the application of knowledge, skills, tools and techniques toproject activities in order to meet stakeholders needs and

expectations from a project. (PMBOK)... the process of integrating everything that needs to b done as the

project evolves through its life cycle in order to meet theprojects objectives. (Peter Morris)

... the process of guiding a project from its beginning through itsperformance to its closure. Project management requires

planning, organizing, and controlling.(Portny et al. 2008)


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Project Management

the application of methods and tools, techniques and

competences to a project. Project management includes theintegration of the various phases of the project life cycle. Project

management is accomplished through processes. (ISO 21500)

Project management is the application of management practicesaimed at achieving the project goal and objectives. (Artto et al.

2011, p. 25)


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Project Management

Managing a project

- Identifying requirements- Addressing the needs, concerns and expectations

of stakeholders

- Setting up, maintaining and carrying out

communications among stakeholders- Managing stakeholders towards the goal of the

project

- Balancing the competing project constraints (time,

scope and cost)


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Project Management

Three perspectives on projectmanagement (Artto et al. 2011)

- Project management as:- Knowledge areas and processes

- Competences and characteristics

- Tools and communication


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4. Project life cycle

University of Vaasa | Deparment of Management |Project Management


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Project Management

Definition

Project lifecycle refers to the chain of phases inwhich the ideas, expectations, and opportunities fora project are identified; the project is executed; and

the benefits resulting from the use of the projectproduct are gained and product use is supported.

(Artto et al. 2011, p. 35)


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The process

Conceptualization Planning

Implementation

Control

Closing


Project Management 18


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Phase 1: CONCEPTUALIZATION

Identify need Gather data

Establish: goals, basic economics, stakeholders, risk level,strategy, potential team

Guesstimate resources Identify alternatives

A preliminary project plan

Appoint project team

Present proposal

Obtain approval for next phase


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Phase 2: PLANNING

Develop scope baseline: end product(s), quality standards,resources, activities

Establish: master plan, budget, cash flow, WBS, policiesand procedures

Obtain approval to proceed


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Phase 3: IMPLEMENTING

Establish work packages, detailed schedule, informationcontrol systems

Procure goods and services

Execute work packages


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Phase 4: CONTROL

Direct/monitor/forecast/control scope, quality, cost andtime

Compare performance with specifications

Reporting

Change management


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Phase 4: CLOSING

Finalize product(s) Review and accept

Transfer product responsibility

Evaluate project

Document results

Release/redirect resources

Reassign project team


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5. Organizing projects



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A. Pure project organizations

Companies are structured by grouping peopel into projectteams on temporary assignments

Each project is a self-contained business unit

The project manager has sole control over resources

Board of directors

Project board A

Project manager A

Project board B Project board C

Project manager B Project manager C

Contractors (bought in as needed)

S h d k f j


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Strengths and weaknesses of projectstructures

STRENGTH WEAKNESSES Assigns authority solely to

the project manager

Promotes effective and fast

decision making Flexible labour force

Encourages rapid responseto market opportunities

Weak commitment to aprojectssuccess.

It may be difficult to get

the human resourcesneeded

Concern among projectteam members about

the future once theproject ends.


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St th d k f t i


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STRENGTHS WEAKNESESS Suited to dynamic

environments

Emphasizes the dual

importance of projectmanagement and functionalefficiency

Promotes coordination

accross functional units Maximizes scarce resources

between competing projectand functional responsibilites

Two bosses

Difficult to share or splitresources

Long-term projects tend toerase the line organization

Lessons-learned may notbe reported to new

projects

Strengths and weaknesses of matrixstructures

P j t h ld b t f


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Project Management

Projects should be a part ofthe organizationsstrategy

- Portfolio management- Different strategies require different project

structures

- Cost leadership flexible structure that takes

advantage of economies of scale- Differentiation flexible structure with highly

qualified expert resources


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Project Management

Project Management Office

- The PMO is the department or group that definesand maintains the standards of the process relatedto project management within the company

- Assits PMs and project teams

- General support- Training

- Software tools

- Project control

- Standardizes and maintains project managementknowledge

Module 1_ the Nature of Projects

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