Project Management A Managerial Approach

Project ManagementA Managerial Approach

Chapter 1

Projects in Contemporary Organizations


Project Management has emerged because the characteristics of our turn-of-the-century society demands the development of new methods of management

Many forces have fostered the emergence and expansion of Project Management

Forces Of Project Management

3 Paramount Forces driving Project Management: 1. The exponential expansion of human knowledge 2. The growing demand for a broad range of complex, sophisticated, customized goods and services 3. The evolution of worldwide competitive markets for the production and consumption of goods and services

All 3 forces combine to mandate the use of teams to solve problems that used to be solvable by individuals

Objectives of a Project3 Project Objectives:

Performance Time Cost

Expectations of clients are not an additional target, but an inherent part of the project specifications

Objectives of a Project3 Project Objectives:

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

By 1990 it had 7,500 members 5 years later, over 17,000 members And by 1998, it had exploded to over 44,000 members

This exponential growth is indicative of the rapid growth in the use of projects

Also reflects the importance of PMI as a force in the development of project management as a profession

Project Management Institute

Recent Changes in Managing Organizations

The process of managing organizations has been impacted by three revolutionary changes 1. Accelerating replacement of traditional,

hierarchical management by participatory management

2. Currently witnessing the adoption of the “systems approach” (sometimes called “systems engineering”)

3. Organizations establishing projects as the preferred way to accomplish the many specific changes that must be made when the organization attempts to alter its strategy

The Definition of a “Project”

Must make a distinction between terms: Program - an exceptionally large, long-range

objective that is broken down into a set of projects

Task - set of activities comprising a project Work Packages - division of tasks Work Units - division of work packages

In the broadest sense, a project is a specific, finite task to be accomplished

Characteristics of a Project

Have a purposeHave a life cycleInterdependenciesUniquenessConflict

Why Project Management? Companies have experienced:

Better control Better customer relations Shorter development times Lower costs Higher quality and reliability Higher profit margins Sharper orientation toward results Better interdepartmental coordination Higher worker morale

Why Project Management?Companies have also experienced

some negatives: Greater organizational complexity Increased likelihood of organizational

policy violations Higher costs More management difficulties Low personnel utilization

The Project Life CycleStages of a Conventional Project:

Slow beginning Buildup of size Peak Begin a decline Termination

The Project Life Cycle

Chapter 1-13

The Project Life Cycle Time distribution of project effort is characterized

by slow-rapid-slow

The Project Life Cycle

Other projects also exist which do not follow the conventional project life cycle

These projects are comprised of subunits that have little use as a stand alone unit, yet become useful when put together

The Project Life Cycle Unlike the more conventional life cycle, continued inputs of

effort at the end of the project produce significant gains in returns

The Project Life CycleIt is essential for the Project Manager

to understand the characteristics of the life cycle curve for his project

The distinction between the two life cycles plays a critical role in the development of budgets and schedules for the project

The Project Life CycleRisk during project life cycle

With most projects there is some uncertainty about the ability to meet project goals

Uncertainty of outcome is greatest at the start of a project

Uncertainty decreases as the project moves toward completion

Risk During Project Life Cycle Uncertainty decreases as the project moves

toward completion

Textbook Structure

Structure of the text follows the life cycle of projects Text divided into 3 main sections:

Part I - Project InitiationPart II - Project ImplementationPart III - Project Termination

SummaryThe Project Management Institute (PMI) was

founded in 1969 to foster the growth and professionalism of project management

Project management is now being recognized as a valuable “career path” in many organizations, as well as a way to gain valuable experience within the organization

Summary

The three primary forces behind project management are: 1. The growing demand for complex,

customized goods and services 2. The exponential expansion of human

knowledge 3. The global production-consumption

environment

SummaryThe three prime objectives of project

management are: 1. To meet specified performance 2. To do it within specified costs 3. Complete on schedule

Terminology follows in this order: program, project, task, work package, work unit

SummaryProjects are characterized by a

singleness of purpose, a definite life cycle, complex interdependencies, some or all unique elements, and an environment of conflict

Project management, though not problem-free, is the best way to accomplish certain goals

SummaryProjects often start slow, build up

speed while using considerable resources, and then slow down as completion nears

This text is organized along the project life cycle concept: Project Initiation (Chapters 2-6) Project Implementation (Chapters 7-11) Project Termination (Chapters 12-13)


Questions?


Picture Files


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Project Management A Managerial Approach

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