Chapter 2.

Project Management Growth:

Concepts and Definitions

Jurusan Teknik Elektro dan Komputer

Dr. Ramzi Adriman

Ahmadiar
Fathurrahman

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Introduction

 The growth and acceptance of Project Management has changed

significantly over the past 40 years, and are expected to continue.
 The growth of Project Management :
 Roles and responsibilities
 Organization structures
 Delegation of authority
 Decision-making
 Corporate profitability
 Nowadays, the survival of a business may well rest upon how well
project management is implemented, and how quickly.
 Fail Fast, Learn Fast & Improve fast.

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General Systems Management

 General systems theory can be classified as a management approach

that attempts to integrate and unify scientific information across many
fields of knowledge.
 Systems theory attempts to solve problems by looking at the total picture.
 In 1951, Dr. Ludwig von Bertalanffy, a biologist, identified how
specialists in each subsystem could be integrated so as to get a
better understanding of the interrelationships, therefore contributing to
the overall knowledge of the operations of the system.
 In 1956, Prof. Kenneth Boulding identified the communications
problems that can occur during systems integration among different
subsystems and call for a common language.
 In Project Management, the common language can be the PMBOK
(Project Management Body of Knowledge).

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Project Management: 1945-1960

 Line manager wearing the hat of a project manager, would perform

the work necessitated by their line organization, and when
completed, would throw the ball over the fence in hopes that
someone would catch it.
 The problem with over-the-fence management was that the no
single contact point for customer.
 DOD appointed a single point of contact, namely project manager
who had totally accountability through all project phases.
 Due to inability to forecast technology, projects have been
overruns and last ten to 20 years. Project manager was often
wrongly blamed for.

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Project Management: 1960-1985

 In search for new management techniques and organizational

structures that could be quickly adapted to a changing
environment. Project management became a necessity due to :
 Technology increasing at astounding rate
 More money invested in R&D
 More information available
 Shortening of project life cycle

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Project Management: 1985-2003

 Project Management Evolution

 By the 1990s, companies had begun to realize that implementing
project management was a necessity, not a choice.
 Life-cycle Phases for Project Management Maturity
 Driving Forces for maturity
 The components of survival
 The speed of maturity
 Benefits of Project Management
 Project Management cost versus benefits

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Life Cycle Phases for Project
Management Maturity

Executive
Embryonic Management
Acceptance

Line
Management Growth Maturity
Acceptance
Life Cycle Phases for Project
Management Maturity
 Embryonic Phase
– Recognize need & benefits & applications
 Executive Management Acceptance Phase
– Executive understanding & support of project
management
– willingness to change way of doing business
 Line Management Acceptance Phase
– Line management commitment & support
Life Cycle Phases for Project
Management Maturity
 Growth Phase
– Use of life-cycle phase
– Development of project management methodology
– Selection of project tracking system
– Commitment to project planning
 Maturity phase
– Development and integration of cost/schedule control
system
– Development of education program to enhance project
management skill
 Project Management Costs
Versus Benefits
Cost of Project
Management Additional
Profits from
Better Project
Management

$ Pegged

Time
?
 Industry Classification
(By Project Management Utilization)
Project -Driven Hybrid Non-
Project-Driven
• PM has P&L • Production driven
but with many • Very few projects
responsibility
projects • Profitability from
• PM is a
• Emphasis on new production
recognized
profession product develop. • Large brick walls
Present Past
• Multiple career • Short product life • Long life cycle
paths cycles products
• Income comes • Marketing-orient.
from projects • Need for rapid
develop. process

Project Program Product

Management Management Management
Systems, Programs, and Projects: A Definition

 Definition: Systems
 Air Force Definition- A composite of equipment, skills, and techniques capable
of performing and/or supporting an operational role.
 NASA Definition- One of the principal functioning entities comprising the
project hardware within a project or program.
 Definition: Programs
 Air Force Definition- The integrated, time-phased tasks necessary to
accomplish a particular purpose.
 NASA Definition- A relative series of undertakings that continue over a period
of time and that are designed to accomplish a broad, scientific or technical
goal in the NASA long-range plan.
 Definition: Projects
 NASA/Air Force Definition- A project is within a program as an undertaking
that has a scheduled beginning and end, and that normally involves some
primary purpose.

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 KINDS OF PROJECTS
Once a group of tasks is selected and considered to be a
project the next step is to define the kinds of projects
encountered. There are four categories of projects:

INDIVIDUAL PROJECTS
Short-duration projects normally assigned to a single
individual who may be acting as a project manager
and/or a functional manager.

STAFF PROJECTS
These projects that can be accomplished by one
organizational unit, say a department. Staff (or a task
force) is developed from each section involved. This
works best when one functional unit is involved.
 SPECIAL PROJECTS
Very often special projects occur which require that
certain primary functions and/or authority be assigned
temporarily to other individuals or unit. These works
best for short-duration projects. Long-term projects
can lead to severe conflicts.

MATRIX OR AGGREGATE PROJECTS

These projects require specific (or specialized) input from
a large number of functional (or business) units and
usually control vast resources.
Product versus Project Management: A Definition

 For all practical purpose, there is no basic difference between

program management and project management
 But what about product management? One major difference
between Product and Project Management is the end date of his
project.

https://medium.com/pm101/the-difference-
between-product-program-and-project-
management-64e2f1ee4f01
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Maturity and Excellence: A Definition

 Maturity and Excellence in Project Management are different.

 Maturity in project management is the implementation of a
standard methodology and accompanying process such that exists
a high likelihood of repeated successes.
 Organizations excellent in project management are those that
create the environment in which there exists a continuous stream
of successfully managed projects and where success is measured
by what is in the best interest of both the company and the project.
 Excellence goes well beyond maturity. One must have maturity to
achieve excellence.

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 Successes Vs. Failures

Failures

Successes
Projects

MATURITY EXCELLENCE
2 YEARS 5 YEARS

Time
Informal Project Management: A Definition

 Companies today are managing projects more informally than

before.
 Informal management does some degree of formality but
emphasizes managing the project with a minimum amount of
paperwork.
 Informal project management mandates:
 Effective communications
 Effective cooperation
 Effective teamwork
 Trust

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Evolution of Policies,
Procedures and Guidelines

Checklists
Life Policy and Guidelines General with
Cycle Procedure per Project Periodic
Phases Manuals Life Cycle Guidelines Review
Phase Points

1970s Early 1980s Mid 1980s Late 1980s 1990s

Project
CONVENTIONAL PROJECT MANAGEMENT
Management
with Concurrent
Engineering
LEGEND

n
a tio
t
en
um
D oc
of
de
tu
ni
ag
M
The Many Faces of Success

 Historically, the definition of success has been meeting the

customer’s expectations regardless of whether or not the
customer is internal or external.
 Success also includes getting the job done within the constraints
of time, cost, and quality.
 Success: Point or Cube?
 Definition of Success:
 Primary Factors
 Secondary Factors
 Key performance indicators (KPI)

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Success: Point Or Cube?
Cost

i
l )ty
a
Qu p e co
s
(or

Time
Success
 Definition of Success
– Primary Factors
 Within Time
 Within Cost
 Within Quality
 Accepted by The Customer
Success
Secondary Factors:
 Customer Reference
 Follow-on Work
 Financial Success
 Technical Superiority
 Strategic Alignment
 Regulatory Agency Relations
 Health and Safety
 Environmental Protection
 Corporate Reputation
 Employee Alignment
 Ethical conduct
 Success
 Critical Success Factors (CSFs) [Focuses
on the Deliverables]

 Key Performance Indicators (KPIs)

[Focuses on the Execution Metrics of the
Process]
 Key Performance Indicators

These are shared learning topics

which allow us to maximize what
we do right and correct what we
do wrong.
The Many Faces of Failure

 The true definition of failure is when the final results are not what
were expected, even though the original expectation may or may
not have been reasonable.
 Components of failure – planning failure & actual failure
 Perceived failure = planning failure + actual failure
 Ineffective planning/scheduling/estimating/cost control
 Poor morale/motivation/commitment/productivity/human
relations
 Risk planning
 Mitigation strategies available

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 Risk Planning

n s Poor Risk
t i o Management
ct a
p e
E x
r
Performance

m e Technical
s to Inability
Cu

r m a n ce
a l Pe rf o
Actu
Time
 Mitigation Strategies Available
Technical Risk Financial Risk
Assessment Assessment
and Forecasting
Te
c
St hni
ra
teg cal
y
Project Project Project
k et Objectives Planning Execution
r a
M
t/ gy
c
u a te
o d r
Pr St
Market Risk
Assessment Schedule Risk
and Forecasting Assessment

Numerous Opportunities for Tradeoffs Limited

Resulting from Risk Analyses
The Stage-Gate Process

 The Stage-Gate Process is the starting point and eventually

evolved into life-cycle phase.
 The Traditional organizational structure was primarily top-down
that no longer practical for organizations that use project
management and horizontal work flow.
 Stage
 Gate
 Gatekeeper
 Gatekeeper’s decision
 Stage-Gate process can facilitate decision-making and risk
management.

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Project Life Cycles

 The life-cycle of a product

 Research and development
 Market introduction
 Growth
 Maturity
 Deterioration
 Death
 The life-cycle phase of a system
 Conceptual
 Planning
 Testing
 Implementation
 Closure
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DEFINITION OF A PROJECT LIFE CYCLE

CONCEPTUAL FEASIBILITY AND DETAILED IMPLEMENTATION CONVERSION

PHASE PRELIMINARY PLANNING PHASE PHASE OR TERMINATION
PLANNING PHASE PHASE
RESOURCES

Resources
Utilized

* PMO
PMO

TIME
Project Management Methodologies: A Definition

 Achieving project management excellent, or maturity, is more likely

with a repetitive process that can be used on each and every
product.
 Integrated process for the 21 century.
 Integrated process (past, present, and future)

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 Integrated Processes for
The 21st Century
Project Management

Concurrent Total Quality

Engineering Management

Change Risk
Management Management
 Integrated Processes
(Past, Present, and Future)
Yrs: 1990-2000 Current Yrs: 2000-2010
Integrated Integrated Integrated
Processes Processes Processes
• Project • Supply chain
management management
• Total quality • Business
management processes
• Concurrent • Feasibility
engineering studies
• Scope change • Cost-benefit
management analyses (ROI)
• Risk management • Capital
budgeting
Change Management and Corporate Cultures

 The most difficult projects to manage are those that involve the
management of change.
 Methodology inputs
 Resistance to change
 Types of Culture
 Change Process

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Methodology Inputs
People

Project
Work Management Tools
(Tasks)
Methodology

Organization
Systems Thinking Is Vital For Project Success

 The system approach:

 Defined as logical and disciplined process of problem-solving
 Forces review of the relationship of the various subsystems
 Is a dynamic process that integrates all activities into a meaningful
total system
 Systematically assembles and matches the parts of the system
into a unified whole
 Seeks an optimal solution or strategy in solving a problem

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Systems Thinking (continued)

 Phases of development is similar to project life cycle:

 Translation
 Analysis
 Trade-off
 Synthesis
 The terms of system approach:
 Objective
 Requirement
 Alternative
 Selection criteria
 Constraint

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Systems Thinking (continued)

 Systems analysis process:

 Input data into mental process
 Analyze data
 Predict outcomes
 Evaluate outcomes and compare alternatives
 Choose the best alternative
 Take action
 Measure results and compare them with prediction

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Tugas
 Buat cornell note untuk materi hari ini, highlight
perbedaan dari project, product dan programe
management?(ditulis tangan)
 Buatlah sebuah tulisan max 1000 kata
mengenai kegagalan pengebangan Boeing
737 Max-8 dari perspective project
management? (diketik komputer)
Due on 12 March 2021 (16.00)
Submit via E-Learning (disatukan menjadi satu
file format pdf)
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