Project Management

Chapter 1: Project
Management in Today’s Time
Objectives
n Describe the nature of a project;
n Distinguish between different classifications of projects;
n Recognize the phases in the project life cycle and pertinent
activities in each phase;
n Characterize project attributes and their distinctive features;
n Internalize the primary goals of a project;
n Validate the societal forces that have contributed to the need &
importance of project management in today’s organizations;
n Authenticate the advantages and disadvantages of project
management; and
n Verify the limitations of project management.
2
 Project Defined
n Is a temporary unique group activity intended
to meet specific objectives with constraints
and requirements in scope, budget, schedule,
resources, performance factors and value
designed to meet customer needs.
n Based from the definition, project is different
from other organizational efforts being
undertaken by most organizations because
of the ff. reasons:
3
1. it has an established objective
2. it has a defined life span with beginning and
an end
3. it requires the involvement of several
department & professionals
4. it is doing something that has never been
done before
5. it has specific time, budget, resources,
performance and value added requirements4
 Deliverable
n Deliverable – is the measurable & tangible
outcome or the result of the completion of
the project or the end of the project’s life
cycle. It could be in the ff. forms:
n 1. hardware deliverable
n 2. software deliverable
n 3. Interim deliverable

5
 Classification of a Project
Project type Definition Examples
1. Compliance It is a “must” project to √Healthcare information
meet the new reqts. protection projects
Enforced by management √Environmental regulations
itself & regulating bodies projects
like the government.
Penalties await non-
compliance

2. Emergency It is a “must-do” project √Rebuild factory damaged

that is required to meet by fire
emergency condition. If not √Renovate plant destroyed
done will impair operation by a strong typhoon
& will not be able to fulfill
the core competencies of
the firm.
6
 Classification of a Project
Project type Definition
3. Mission critical It is a project critical to
the mission of the firm. If
not accomplished shall
cause immediate &
unacceptable negative
impact to the business.
Examples
√Construction of a data
center for an application
services provider
√A new facility to test
products

4. Operational Operational project is √Six Sigma projects

considered necessary in
order to give full support
to the present operations
like delivery systems
upgrading for efficiency,
product costs cutback and
performance
enhancement.
7
 Classification of a Project
Project type Definition Examples
5. Strategic It is a project that is vital o √New product design
support the long term √Development projects
mission of increasing
revenue & market share.

8
Project Life Cycle
 Project Life Cycle
n 4 Stages –
n 1. Conceive/Initiation
n 2. Planning
n 3. Execution
n 4. transfer/Delivery/Closure

10

Phase 1
(Concept/Conceive)
Identify need
Establish feasibility:
-program, process,
schematics, prelim budget,
schedule, project team,
financing, risks
Id alternatives
Present proposal
Approval to proceed
Project Life Cycle
Phase 2 Phase 3 Phase 4
(Planning/Develop) (Execution/Execute) (Transfer/Finish)
Develop: Set up organization Training operators
- plan, block diagrams,
sketches, outline drawings,
standards
Conduct studies Working drawings & Review & acceptances
specs
Select equipment Design review Transfer materials
Reconfirm economics: Procure eqpt. Settle all accounts
-budget, cash flow, financing,
schedule
Reassess risks, Produce physical asset Re-assign remaining team
alternatives
Present project brief Qlty. assurance/control Archive lessons learned
Obtain approval to Verify performance Close all records
proceed
Modify as required Deliver final report &
transfer responsibility
Progress monitoring 11
Forecasts & reports
 Project Life Cycle

n 5 components of a project that might vary

over the course of its LC that may pose as
challenges:
n 1. Client interest
n 2. Project stake
n 3. Resources
n 4. Creativity
n 5. Uncertainty
12
 Project attributes

n are set of descriptive features and restrictions

of a project that describe significant
information regarding the project and
communicate it to different stakeholders.
n They also illustrate project performance &
activity condition.

13
 Project attributes

n Attributes of a project:
n 1. Importance – The project must be significant enough to the top
management in order to rationalize putting up a unique organizational
unit beyond the routine structure of the orgn. The project will surely fail
if majority of those in the organization believe that the project is not
really essential. Some sign that the project is not important consists of
the ff.:
n a. top management does not talk about it
n b. the project leader belongs to a low stature or rank
n c. The assignment of the project is delegated to an overstuffed employee
n d. progress of the project is not being monitored
n e. failure to oversee the needed resources for the project

14
 Project attributes
n 2. Scope
n 3. Life span w/ a fixed deadline – It usually starts slow, then
advances into a peak, passes to a decline before completed within a
deadline. A successful project ends by being a part of the customary,
current operations of the parent organization.
n 4. Interdependencies
n 5. Uniqueness – No two projects are exactly the same
n 6. Resources – restricted budget
n 7. Conflict – project vs. functional departments (in terms of human
resources & other resources)

15
 Primary Goals of Project
n 1. Conclude the project w/in the planned
timetable
n 2. Complete the project w/in the programmed
budget
n 3. End the project with the identical level of
quality
n 4. Terminate the project w/in the detailed
guidelines
n 5. Make the best of the task that has been
given 16
 Why Project Management?

n Project management is the science & art in the

application of knowledge, skills, tools, and
techniques to execute projects effectively &
efficiently toward the accomplishment of its goals &
objectives.
n It could be applied in the development of a new
product, the launch of a new service, or a mktg.
campaign. Inorder to compete strategically in the
market, proj. mgt. could be developed as a
competency for organizations, binding project
outcomes to business goals.
17
 Why Project Management (PM)?

n Environmental forces that contribute to the increase

demand for good PM:
n 1. Shorten product life cycle (PLC)
n 2. Worldwide competition
n 3. New knowledge bang
n 4. Organizational rightsizing
n 5. Enhanced focus on customer
n 6. Small project means big troubles

18
 Advantages of Project
Management
n A more resourceful handling of resources (financial, physical, and human
resources) as both the schedule & the budget are clear in the project plan
n Less cost & better quality of the end product/service conveyed by
executing meticulous cost management & quality mgt processes
n Shorter development times
n Higher profit margins
n Improved productivity
n An improved team work atmosphere because of the implementation of a
formal process to acknowledging/resolving conflicts (conflict
management)
n A flattering touch of professionalism to the company leading to a
healthier insight by external organizations (Higher worker morale)

19
 Disadvantages of Project
Management
n 1. Overhead
n a. cost overhead
n b. communication overhead
n c. time overhead

n 2. Obsession
n a. methodology obsession
n b. Process obsession
n c. Stakeholder obsession

n 3. Non-creativity
n a. Technical
n b. Managerial
20
 Limitations of Project
Management

1. Failure to “stick” with the project scope

2. Failure to completely make parallel the
project objectives with the
business/organizational strategy
3. Failure to administer projects with
unstipulated budget and/or schedule
4. Reliance on functional management
5. Pursuing an exclusive methodology
21
n Thank you for listening!

22