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Project Management: A

Managerial Approach

Chapter 1 – Projects in
Contemporary Organizations
© 2006 John Wiley and Sons, Inc.
Overview
• Project Management Growth Factors
• Project Aspects
• Project Criteria
• Project Life Cycle
• Project Management Profession

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Project Management Emergence
• Explosion in human knowledge

• Mass customization of products and services

• Expansion of global markets

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Forces Of Project Management
• Forces driving Project Management:
– 1. exponential expansion of human knowledge
– 2. growing demand for a broad range of complex,
sophisticated, customized goods and services
– 3. evolution of worldwide competitive markets for the
production and consumption of goods and services
• Team-based problem solving v. individual

© 2006 John Wiley and Sons, Inc.


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
– 1995, over 17,000 members
– 1998--exploded to over 44,000 members
• This exponential growth is indicative of the rapid growth in the
use of projects
• Importance of PMI as a force in the development of project
management as a profession

© 2006 John Wiley and Sons, Inc.


Project Management Institute:
Membership Growth Curve

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Organizational Imperatives
• Traditional hierarchical management declining
• Consensual management increasing
• Increasing reliance on systems engineering
• Projects integral to organizational strategy

© 2006 John Wiley and Sons, Inc.


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
• A specific, finite task to be accomplished

© 2006 John Wiley and Sons, Inc.


Project Management
A Working Definition
• Project:
– A problem with a known solution scheduled for
completion—unique and non-routine activities
• Project Management:
– The science and art of solving the problem within
predetermined time and resource parameters
– Shouldering just enough risk to escape with your
career intact!!!

© 2006 John Wiley and Sons, Inc.


Characteristics of a Project
• Have a supported purpose/importance
• Performance specifications (form, fit, function)
• Known (bounded) solution
• Have a life cycle with finite due date
• Interdependencies
• Uniqueness
• Resource requirements and tradeoffs
• Stakeholder Conflict

© 2006 John Wiley and Sons, Inc.


Quasi-Projects and Fuzzy Goals
• Tasks without Specific Targets
– No Who, What, When, Where, How Much
• Implied Performance, Cost, Time Constraints
• “Projects” to Determine Project Scope

• Warning: If these Become Projects, Expect


Delays, Cost Overruns, Dissatisfied
Customers
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Objectives of a Project
• Project Objectives:
– Performance
– Time
– Cost
• Expectations of clients inherent part of the
project specifications

© 2006 John Wiley and Sons, Inc.


Objectives of a Project
• 3 Project Objectives:

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Why Project Management?
• Companies have experienced:
– Better customer relations
– Shorter overall delivery times
– Lower costs and higher profit margins
– Higher quality and reliability
– Higher worker morale

© 2006 John Wiley and Sons, Inc.


Why (not) 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

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The Project Life Cycle
• Stages of a Conventional Project:
– Slow beginning
– Buildup of size
– Peak
– Begin a decline
– Termination

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The Project Life Cycle

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The Project Life Cycle
• Projects also exist which do not follow the
conventional project life cycle
• Comprised of subunits that have little use as a
stand alone unit, yet become useful when put
together

© 2006 John Wiley and Sons, Inc.


The Project Life Cycle
• Time distribution of project effort is characterized by
slow-rapid-slow

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Project Management Life Cycle
Definition Planning Implementation Delivery
Level of effort

1. Goals 1. WBS 1. Status reports 1. Train user


2. Specifications 2. Budgets 2. Change Orders 2. Transfer documents
3. Scope 3. Resources 3. Quality Audits 3. Release resources
4. Responsibilities 4. Risks 4. Contingencies 4. Reassign staff
5. Teams 5. Schedule 5. Lessons learned
© 2006 John Wiley and Sons, Inc.
Proactive Project Life Cycle

High
Project Manager Roles and Responsibilities
Level Change Management System
of
Value
of Closed-Loop Planning-Monitor-Control System
Effort
Project Evaluation (Audit) Process

Low
Define Plan Implement Delivery
Scope WBS/OBS/Schedule Resource (Re)allocation “Learn Curve”
Tradeoffs Detailed Budget Cost Containment Final Report
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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

© 2006 John Wiley and Sons, Inc.


Projects in Contemporary
Organizations

Figure 1-3
© 2006 John Wiley and Sons, Inc.
Projects in Contemporary
Organizations

Figure 1-4
© 2006 John Wiley and Sons, Inc.
Projects in Contemporary
Organizations

Figure 1-5
© 2006 John Wiley and Sons, Inc.
Projects in Contemporary
Organizations

Figure 1-6
© 2006 John Wiley and Sons, Inc.
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