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Project Management A Managerial Approach. Chapter 1 Projects in Contemporary Organizations. 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

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Project management a managerial approach

Project ManagementA Managerial Approach

Chapter 1

Projects in Contemporary Organizations

Projects in contemporary organizations
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
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 project
Objectives of a Project

  • 3 Project Objectives:

    • Performance

    • Time

    • Cost

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

Objectives of a project1
Objectives of a Project

  • 3 Project Objectives:

The professionalism of project management
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

Recent changes in managing organizations
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
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
Characteristics of a Project

  • Have a purpose

  • Have a life cycle

  • Interdependencies

  • Uniqueness

  • Conflict

Why project management
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 management1
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 cycle
The Project Life Cycle

  • Stages of a Conventional Project:

    • Slow beginning

    • Buildup of size

    • Peak

    • Begin a decline

    • Termination

The project life cycle2
The Project Life Cycle

  • Time distribution of project effort is characterized by slow-rapid-slow

The project life cycle3
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 cycle4
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 cycle5
The Project Life Cycle

  • It 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 cycle6
The Project Life Cycle

  • Risk 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
Risk During Project Life Cycle

  • Uncertainty decreases as the project moves toward completion

Textbook structure
Textbook Structure

  • Structure of the text follows the life cycle of projects

    • Text divided into 3 main sections:

      • Part I - Project Initiation

      • Part II - Project Implementation

      • Part III - Project Termination


  • The 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


  • 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


  • The 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


  • Projects 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


  • Projects 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)