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MBB3173 Project Management. Introduction Topic To Be Covered Defining of Project Management History of Project Management Project Management Functions Project Planning and Scheduling Project Management Application Benefits and Limitations of Network Planning. Making a Satellite.

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Mbb3173 project management

MBB3173Project Management


Topic To Be Covered

Defining of Project Management

History of Project Management

Project Management Functions

Project Planning and Scheduling

Project Management Application

Benefits and Limitations of Network Planning

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Making a Satellite

Factory operations

What is common between these activities?

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Pre 19th Century

The Great Wall of China (221 B.C. -

206 B.C.)

The Great Pyramid of Giza (2,550 B.C.)

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The 16th Century and Modern Age of Engineering

This marked the beginning of modern engineering with the formation of professional

societies, printing of treatise on engineering subjects in quantity, engine specialization within the profession, and engineers began to take advantage of the brilliant scientific discoveries of the time.

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The 18th and 19th Century and the Industrial Revolutions

The end of the 18th and 19th century witnessed colossal changes in the Western World with industrial revolutions and with this the birth of management principles in the business to become the backbone of project management

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The First Industrial Revolution and Steam

The changes brought about by the first industrial revolution and its

repercussions required new thinking and solutions at a more macro level. For example, this new industrialized world with mass production required a system to supply large quantities of raw materials, resources, man power, equipment and organization.

It needed more sophisticated systems of transportation, storage, manufacturing, assembly and distribution. Further a rapidly expanding workforce of thousands needed to be taken care of in terms of housing, health, welfare, and education. All this brought in new institutions, establishments, and organizations. It also brought a more to business and management based on scientific research and principles.

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The Second Industrial Revolution Electricity and Combustion Engines

The very late part of the 19th century saw the second industrial revolution emerge with a host of new emerging technologies. The second, dominated by electricity and chemicals, lasted 1890-1930, and brought telephones, electrical devices, the internal combustion engine, and transportation by land (automobiles), sea (ocean going liners), and air.

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Establishment of Project Management Institute (PMI)

In 1969, the Project Management Institute (PMI) was formed in the United States of America to serve the interest of the project management industry. The premise of PMI is that the tools and techniques of project management are common even among the widespread application of projects from the software industry to the construction industry.

In 1981, the PMI Board of Directors authorized the development of what has become A Guide to the Project Management Body of Knowledge (PMBOK Guide), containing the standards and guidelines of practice that are widely used throughout the profession.

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Project management as a profession
Project Management as a Profession

  • Project Management Institute

    • More than 64,000 members

  • Project Management Body of Knowledge (PMBOK)

  • Project-oriented organization

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Projects versus operations
Projects versus Operations

Organizations perform work - either

Operations, or


Shared characteristics of projects and operations

Performed by people

Constrained by limited resources

Planned, executed and controlled

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Operations and projects differ
Operations and projects differ:

Operations are ongoing and repetitive (Factory operations)

Projects are temporary and unique (Making of satellite)

“A project is a temporary endeavor undertaken to create a unique product or service.”

temporary - definite beginning and end

unique - different in some distinguishing characteristic

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Examples of projects
Examples of projects

Developing a new product or service

Effecting a change in structure, staffing, or style of an organization

Designing a new transportation vehicle

Constructing a building or facility

Running a campaign for political office

Implementing a new business procedure or process

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Project characteristics
Project Characteristics

  • Have a specific objective (which may be unique or one-of-a-kind) to be completed within certain specifications

  • Have defined start and end dates

  • Have funding limits (if applicable)

  • Consume human and nonhuman resources (i.e., money, people, equipment)

  • Be multifunctional (cut across several functional lines)

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What is project management
What is Project Management?

Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project.

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The project management challenge
The project management challenge

Meeting or exceeding stakeholder needs and expectations invariably involves balancing competing demands among:

Scope, time, cost, and quality

Stakeholders with differing needs and expectations

Identified needs and unidentified expectations - “client relations challenge”

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Identify stakeholders
Identify Stakeholders

  • Critical to identify early

  • Analyze their interests, importance, influence

  • Classify stakeholders and prioritize relationships building accordingly

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Identify Project Stakeholders

Project Manager

Project Sponsor

Department Managers


Project Team

Board of Directors

Contractors, Suppliers

Executive Managers

Project Management Office

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Sample of power interest grid stakeholder
Sample of Power/Interest GridStakeholder







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Communication mode
Communication Mode

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The core of project management
The core of project management

Where most projects fail?

published by PMI in 1987

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Project management knowledge areas pmbok
Project Management Knowledge Areas (PMBOK)

Scope Management

Cost Management

Communications Management

Human Resources Management

Time Management

Quality Management

Risk Management

Procurement Management

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Relationship to other disciplines similarities
Relationship to other disciplines - similarities

General management encompasses





PM management functions overlap

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Function overlap
Function overlap

Planning the work, schedule and budget

Organizing and staffing a team to implement the work

Controlling the project through tracking and monitoring progress against the plan

Leading people and resources so the plan is implemented and adjusted as smoothly as possible

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Relationship to other disciplines differences
Relationship to other disciplines - differences

Much of the knowledge needed to manage projects is unique or nearly unique to project management, e.g.

Critical path analysis, and

Work breakdown structures

Primary differences between general management and PM found in the use of specialized tools and techniques.

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Why do you need project management techniques
Why do you need project management techniques?

“The reason for organizing an assignment as a project is to FOCUS the responsibility, authority, and scheduling of the project in order to meet defined goals.”



performance (quality)

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Other major reasons to use pm techniques
Other major reasons to use PM techniques

Clear work descriptions minimize surprises and conflicts

Responsibilities and assignments for specific tasks are easily identified

Reduces need for continuous reporting

Progress can be measured against a plan

Time limits for task completion are more easily specified

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The two types of project management activities
The two types of project management activities

Project planning and definition activities

Project implementation and control activities

More simply

Deciding, and


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Planning and definition activities
Planning and definition activities

Definition of project goals and objectives

Definition of work requirements

Definition of quantity of work

Definition of quality of work

Definition of required resources

Definition of organization structure

Planning of task sequencing and schedule

Planning of the budget

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Implementation and control activities
Implementation and control activities

Initiating work

Monitoring and tracking progress

Comparing schedules and budgets to plans

Analyzing impact of changes and progress

Coordinating activities and people

Making adjustments to the plan as required

Completing the project

Assessing project results

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Success factors in project management
Success factors in project management

Appropriately skilled project manager

Clear authority for the PM to act

Commitment to the PM methodology

A skilled PM team agreed to the project goals

A complete project plan that is understood by all participants

Objectives that contribute to the larger goals of the organization

Workable tracking and monitoring methods

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Bottom line
Bottom line

What project management will do is provide a system for planning, documenting, organizing, and communicating.

It provides a basis for better decisions

Ultimately, it is the people who will make things happen and make things work, not the methodology!

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Project management
Project Management

  • Project Planning

    • Definition of work requirements

    • Definition of quantity and quality of work

    • Definition of resources needed

  • Project monitoring

    • Tracking progress

    • Comparing actual outcome to predicted outcome

    • Analyzing impact

    • Making adjustments

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The pure project organization
The Pure Project Organization

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The pure project organization1
The Pure Project Organization

  • Advantages

    • Effective and efficient for large projects

    • Resources available as needed

    • Broad range of specialists

    • short lines of communication

  • Drawbacks

    • Expensive for small projects

    • Specialists may have limited technological depth

    • May require high levels of duplication for certain specialties

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Functional project organization
Functional Project Organization

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Functional project organization1
Functional Project Organization

  • Advantages

    • technological depth

  • Drawbacks

    • lines of communication outside functional department slow

    • technological breadth

    • project rarely given high priority

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Matrix project organization
Matrix Project Organization

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Matrix project organization1
Matrix Project Organization

  • Advantages

    • flexibility in way it can interface with parent organization

    • strong focus on the project itself

    • contact with functional groups minimizes projectities

    • ability to manage fundamental trade-offs across several projects

  • Drawbacks

    • violation of the unity of command principle

    • complexity of managing full set of projects

    • conflict

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Mixed project organization
Mixed Project Organization

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Communication Paths Between a Project’s Parties-At-Interest

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  • Identification of functional responsibilities to ensure that all activities are accounted for, regardless of personnel turnover.

  • Minimizing the need for continuous improvement

  • Identification of time limits for scheduling

  • Identification of a methodology for trade-off analysis

  • Measurement of accomplishment against plans

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Benefits continued
Benefits (continued)

  • Early identification of problems so that corrective action may follow

  • Improved estimating capability for future planning

  • Knowing when objectives cannot be met or will be exceeded

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  • Project complexity

  • Customer’s special requirements and scope changes

  • Organizational restructuring

  • Project risks

  • Changes in technology

  • Forward planning and pricing

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Classical management
Classical Management

  • Planning

  • Organizing

  • Staffing

  • Controlling

  • Directing

Which of the above is Usually NOT performed by the project manager?

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  • Money

  • Manpower

  • Equipment

  • Facilities

  • Materials

  • Information/technology

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Successful culture
Successful Culture

  • A good daily working relationship between the project manager and those line managers who directly assign resources to projects

  • The ability of functional employees to report vertically to their line manager at the same time they report horizontally to one or more project managers

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Interface management
Interface Management

  • Managing human interrelationships within the project team

  • Managing human interrelationships between the project team and the functional organization

  • Managing human interrelationships between the project team and senior management

  • Managing human interrelationships between the project team and the customer’s organization, whether an internal or external organization

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Integration management


Integration Management



  • Capital

  • Materials

  • Equipment

  • Facilities

  • Information

  • Personnel






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The functional role
The Functional Role

  • The functional manager has the responsibility to define how the task will be done and where the task will be done (i.e., the technical criteria)

  • The functional manager has the responsibility to provide sufficient resources to accomplish the objective within the project’s constraints (i.e., who will get the job done).

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Functional obstacles
Functional Obstacles

  • Unlimited work requests (especially during competitive bidding)

  • Predetermined deadlines

  • All requests having a high priority

  • Limited number of resources

  • Limited availability of resources

  • Unscheduled changes in the project plan

  • Unpredicted lack of progress

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Functional obstacles continued
Functional Obstacles(continued)

  • Unpredicted lack of progress

  • Unplanned absence of resources

  • Unplanned breakdown of resources

  • Unplanned loss of resources

  • Unplanned turnover of personnel

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Results of good planning
Results of Good Planning

  • Assurance that functional units will understand their total responsibilities toward achieving project needs.

  • Assurance that problems resulting from scheduling and allocation of critical resources are known beforehand.

  • Early identification of problems that may jeopardize successful project completion so that effective corrective action and replanning can occur to prevent or resolve problems.

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