Project Management A Managerial Approach

Project ManagementA 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 • 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 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 Project • 3 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 purpose • Have a life cycle • Interdependencies • Uniqueness • Conflict

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 Cycle • Stages 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 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 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 • 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 Initiation • Part II - Project Implementation • Part III - Project Termination

Summary • 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

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

Summary • 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

Summary • 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

Summary • 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)

Projects in Contemporary Organizations Questions?

Projects in Contemporary Organizations Picture Files

Projects in Contemporary Organizations Figure 1-1

Project Management A Managerial Approach