Project Management

Lecture 1
Introduction to Project Management

Ir Claus M K Chan
clausmkchan@gmail.com

1
 This week: Reflective items (L01)
1. Had you ever be an organizing member of a
wedding banquets or birthday party or annual
dinner? Was it a successful event? Any experience
you gained?

2. What key characteristics do all projects possess?

2
https://www.youtube.com/watch?v=08UvZp86H_Y
https://www.youtube.com/watch?v=5ct5nAOdYp0

3
 Examples of Projects
• Projects, rather than repetitive tasks,
are now the basis for most value-
added in business
• 3rd Runway System at airport

• Mass Transit Railway Corp. high speed

rail development at Hong Kong

• Apple Inc. iPhone 8 development

4
 Examples of Projects

• Sydney Opera House

• Food Truck trial

• Hong Kong Book Fair 2019

• Wedding banquets

5
 Examples of Projects
• 65th Macau Grand Prix (2018)
• 2017 HONG KONG E-PRIX
• Hong Kong Cyclothon
• Harbour Race 2017
• Relocation of office/factory
• Home relocation
• Birthday / Christmas party
• Annual dinner

6
Project Management

7
 Objectives
• Understand the purpose of project management
• Recognize the basic properties of projects
• Understand and explain the project life cycle,
its stages, and the activities that typically occur
and obstruct at each stage in the project
• Understand the concept of project “success,”
including various definitions of success

8
 What is a Project?
• “Project is a temporary organization that is created for the purpose of
delivering one or more business products according to an agreed
Business Case.”
O.G.C. (2009)

• “A project is a temporary endeavor undertaken to create a unique

product or service.”
P.M.I. (2013)

• “A project is a unique, transient endeavour, undertaken to achieve

planned objectives, which could be defined in terms of outputs,
outcomes or benefits.”
A.P.M. (2014)

9
 Project Management
• Project management is the application of processes, methods,
knowledge, skills and experience to achieve the project objectives.
A.P.M. (2014)

• Project management is the planning, delegating, monitoring and

control of all aspects of the project, and the motivation of those
involved, to achieve the project objectives within the expected
performance targets for time, cost, quality, scope, benefits and risks.
O.G.C. (2009)

• Project management is the application of knowledge, skills, tools,

and techniques to project activities to meet the project
requirements
P.M.I. (2013)

10
 Characteristics of a Project
• Change
• Projects are the means by which we introduce change
• Temporary
• Projects are temporary in nature. Once the desired change has been implemented,
business as usual resumes (in its new form) and the need for the project is removed.
Projects should have a defined start and a defined end
• Cross-functional
• Projects involve a team of people with different skills working together (on a temporary
basis) to introduce a change that will impact others outside the team. Projects often
cross the normal functional divisions within an organization and sometimes span entirely
different organizations.
• Unique
• Every project is unique. An organization may undertake many similar projects, and
establish a familiar, proven pattern of project activity, but each one will be unique in
some way: a different team, a different customer, a different location. All these factors
combine to make every project unique
• Uncertainty
• Clearly, the characteristics already listed will introduce threats and opportunities over
and above those we typically encounter in the course of business as usual. Projects are
more risky.
O.G.C. (2009)

11
 Differences between
Operation and Project
Daily Operation/Process Temporary Project

1. Repeat process or product 1. New process or product

2. Several objectives 2. One objective

3. Ongoing 3. One shot – limited life

4. Uniform 4. Cross-functional

5. Systems in place to integrate efforts 5. Systems must be created to integrate efforts

6. Performance, cost, & time known 6. Performance, cost & time less certain

7. Part of the line organization 7. Outside of line organization

8. Bastions of established practice 8. Violates established practice

9. Supports status quo 9. Upsets status quo

Pinto (2013)

12
 Common Project Management
Methodologies
• PMBOK
• Project Management Body of Knowledge by Project Management Institute (PMI). Strictly
speaking it is a set of knowledge areas that help to manage projects.
• PRINCE2
• Projects in Controlled Environment by The Office of Government Commerce is a process-
based method for effective project management. PRINCE2 is extensively used by the UK
Government. It is widely recognised and used in the private sector internationally and offers
non-proprietorial best practice guidance on project management.
• Critical chain project management
• Critical chain project management (CCPM) is a method of planning and managing
projects that emphasizes the resources required to execute project tasks. It was
developed by Eliyahu M. Goldratt and based on the Theory of Constraints.
• Agile Project Management
• Agile project management is an iterative and incremental method of managing the
design and build activities for engineering, information technology, and new product or
service development projects in a highly flexible and interactive manner.
• Others:
• Lean, Six Sigma

13
An Example of the P.M.I.’s PMBOK
Knowledge Areas

14
 References
• Pinto, J.K. (2016). Project Management: Achieving Competitive
Advantage, 4th edition, Pearson.

• A.P.M. (2014). [Online] ‘What is Project Management’, Association

of Project Management, [Available at:
http://www.apm.org.uk/WhatIsPM#WhatisPM] (Accessed in Oct.,
2014).
• Lock, D. (2013). Project Management 10th edition Aldershot: Gower.
• P.M.I. (2013). A guide to the Project Management Body of
Knowledge (PMBOK guide), fifth edition, Project Management
Institute, Norwood, Massachusetts.
• O.G.C. (2009). Managing Successful Projects with PRINCE2, The
Office of Government Commerce, TSO Ltd., United Kingdom.

15
Chapter 1

16
Project Constraints

17
 Project Constraints

All projects operate with constraints.

For example:
⚫ £9.3bn budget
⚫ July to August 2012
⚫ Venues and event management
for 26 sports and housing for athletes
from more than 200 countries

18
 The Project Triangle
In the project triangle, also called the iron triangle, there are
three key constraints (triple constraint):

Cost

Time Scope/Quality

19
 Impact of Changes
Changes and constraints
interact with each other: Building a road:

Cost Scope: 2 km long with 1 lane

Time: 2 months (fixed deadline)
Cost: $5 million

Revised scope: 2 km long with 2 lanes

Time: 2 months (fixed deadline)
Time Scope Cost: $7.5 million

20
 Impact of Changes
Changes and constraints
Building of the Hong Kong
High Speed Rail changes:
interact with each other:

Cost Original 2011 budget $62 billion

Revised 2014 budget $67 billion
2017 another HK$19.42 billion

Revision required due to:

▪ Damages by weather conditions
▪ Overlooked the foundation
landscape structures
Time Scope
Cost Time

21
Project Life Cycle

22
 Examples of Project Life Cycle Phases

Example A Example B
1. Initiation and definition 1. Concept
2. Planning 2. Feasibility
3. Execution and control 3. Detailed requirements
4. Closure 4. Solution design
5. Solutions build
6. Solutions implementation
7. Closure

23
 Project Life Cycles - Manpower
Man Hours

Conceptualization Planning Execution Termination

24
Project Life Cycle: Effort

25
Project Success

26
 Sydney Opera House
• One of the most recognizable images of
the world
• It was designed by Jorn Utzon of
Denmark in 1957
• Construction started in 1959
• Estimated to cost AU$7m
• Estimated to take five years to build
• Finally completed in 1973
• 9 years behind schedule
• AU$100m (AU$93m over budget)

http://www.eoi.es/blogs/cristinagarcia-ochoa/2012/01/14/the-sidney-opera-house-construction-a-case-of-project-management-failure/

27
Four Dimensions of Project Success
Importance

4
Preparing for
The Future
3
2 Business
1 Success
Impact on
Project Customer
Efficiency

Project Time
Completion

28
Four Dimensions of Project Success
• Project efficiency: meeting budget and
schedule expectations
• Impact on Customer: Meeting technical
specifications, addressing customer needs,
satisfying client’s needs
• Business success: achieved significant
commercial success
• Preparing for the future: the project opened
new markets or new product lines

29