Unit 1 Notes:

What is a project: A project is not a process. A project is a collection of tasks organized to have defined
start and finish with the purpose of creating a product or service.

Objectives of project management: to make sure that a project is delivered within defined constraints,
and is the optimized allocation and integration of inputs needed to meet pre-defined objectives.

Scope = end result.

Enterprise environmental factors refer to both internal and external environmental factors that surround
or influence a project’s success.

Typical environmental factors:

What are project managers: The project manager is the person assigned by the performing organization
to achieve the project objectives.

Projects are important because they improve efficiencies in the face of narrow product launch windows
and complex and technical products.

Portfolio management: A portfolio refers to a collection of projects or programs that are grouped
together to facilitate effective management of that work to meet strategic business objectives.

Project management developed from various fields.

CPM (Critical Path Management), and PERT (Program Evaluation and Review Technique)

PMI (Project Management Institute).

Taylor’s Principles of scientific management:

Scientific approach to management:

History of project management:

- Henry Ford (mass production)

- Frank and Lillian Gilbreths were scientists who sought to teach managers that all aspects of the
workplace should be constantly questioned, and improvements constantly adopted.
- Scientific management was the first attempt to systematically treat management and process
improvement as a scientific problem.

Well known scientific management concepts: (cybernetics, lean manufacturing)

Six Sigma is a set of practices originally developed by Motorola to systematically improve processes by
eliminating defects.

Gantt Chart:

PERT Chart:

Work Breakdown Structure:

Mass production is suited for large, relatively homogeneous populations of consumers. It is capital
intensive. It requires a clear understanding of the consumer market.

Project Management Institute: published a number of standards related to project management. There
is presently no ISO project management standard.

Future trends in project management:

Project managers do not do salary reviews, schedule vacations, etc. they are general entry level
positions, typically privy to confidential information, does do a lot of the management with employees.

All suppliers, customers, colleagues, sponsors, experts, interested outside influences are project
stakeholders.

Chapter 1 –
Not only is project management critical to most careers, the skill set is transferable across most
businesses and professions.

A project is a temporary endeavor undertaken to create a unique product, service, or result. The major
characteristics of a project are as follows:

1. An established objective.

2. A defined life span with a beginning and an end.

3. Usually, the involvement of several departments and professionals.

4. Typically, doing something that has never been done before.

5. Specific time, cost, and performance requirements.

Projects should not be confused with everyday work. A project is not routine, repetitive work

Program is not a project – a program is a group of related projects designed to accomplish a common
goal over an extended period of time.

Program management is the process of managing a group of ongoing, interdependent, related projects
in a coordinated way to achieve strategic objectives.

Project Lifecycle:

Compression of product life cycle, avg. cycle is 6months – 3 years.

A common rule of thumb in the world of high-tech product development is that a six-month project
delay can result in a 33 percent loss in product revenue share. 6 month delay usually results in 33
percent loss in product revenue share.

The growth in new knowledge has increased the complexity of projects because projects encompass the
latest advances.

Triple bottom line: planet, people, profit.