Professional Documents
Culture Documents
Managing Projects:
What and Why
McGraw-Hill/Irwin 1-1
Copyright 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
Chapter Learning
Objectives
When you have mastered the material in this chapter, you should be able to:
Define and differentiate among projects, programs, and portfolios, and provide examples of each.
Describe the reasons for the increasing importance of projects in organizations of all types, sizes, and
global locations.
Compare a set of projects based on drivers, sources, customers, degree of uncertainty, expected
outcome, organizational reach, scope, degree of complexity, and strategic level. Describe how these
differences will affect the way projects are managed.
Evaluate a project based on its strengths and deficiencies related to key project success factors.
Describe why each factor was important.
For a given project, develop a list of performance metrics, including those that would be considered
part of the triple constraint, as well as a larger set one might find in a balanced-scorecard approach.
Discuss the benefits teams offer to projects and articulate examples of some challenges teams
present to project managers.
Describe the stages in the project management process and identify the options available to the
project manager in synchronizing them.
Offer arguments supporting the value of systematic approaches for managing projects and describe
examples of implementation challenges.
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Projects, Projects, Projects
If it werent for all these projects, I could get my work done.
Anonymous
Weve just been hit with a product recall from the FDA.
I want you to fix the problem and get us back in production.
Vice president of supply chain management for a small, privately held medical devices company
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What is a project?
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Exhibit 1.1
Projects, Strategic Goals,
and Organizational Mission
Here, the
organizations
project portfolio
supports its
mission and
strategic goals.
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Exhibit 1.2
Project Attributes
We can differentiate
them along nine
dimensions.
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Exhibit 1.3
Factors Increasing Project Activity
Project work is on the rise. As shown here, underlying causes include global
competition, shortened product life cycles, and pressures to adopt rapidly
evolving technologies.
These combined forces make many project more complex because of the need fo
coordination across systems, function, continents, languages and cultures.
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Exhibit 1.4
Project Success Factors
10 factors are
essential to
project success.
Think of a recent
unsuccessful
project. Which of
these factors was
missing?
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Exhibit 1.4
Project Success Factors (continued)
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Measuring Project Success:
The Triple Constraint
The most commonly recognized project metrics are time, cost,
and performance.
In combination, they form a set
of potentially competing project
priorities known as the
triple constraint.
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Exhibit 1.6
Triple Constraint Definitions Applied to Chinas
First Manned Space Shot
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Balanced Scorecard
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Project Phases
Selection
Initiation
Planning
Delivery and control
Closure and handoff to the customer
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Exhibit 1.7
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New Models for Concurrent
Development Projects
Agile Software Development: The process of creating
software in a team environment where frequent testing and
consultation with stakeholders allows team members to
grow a functioning system more effectively.
Boehms Spiral Model: An iterative approach to project
control that repeats project phases on a small scale as the
project moves toward completion.
Extreme Programming: New incarnation of agile software
development that includes more structure while retaining
the underlying philosophy of adaptability associated with
agile development.
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Teams in Project Environments
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Exhibit 1.8
Benefits and Challenges Associated with Project
Teams
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What Organizations Can Gain by
Managing Projects Systematically?
Project management maturity: A term that
describes the level of maturity and
sophistication of project management
processes in organizations.
Organizations with systematic project
management processes are more effective and
successful than those lower on the scale of
project management maturity.
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Box 1.4
Quadrant Homes Applies Process
Standardization in a Project Environment
Quadrant Homes, a subsidiary of Fortune 500
Weyerhaeuser Corp., began implementing
standardized methods for custom home-building
projects in 1996. A few examples of the outcomes of
this change are as follows: 1996 2006
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Box 1.4
Quadrant Homes Applies Process
Standardization in a Project Environment
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Chapter Summary