© 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
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Project Management: A Managerial Approach
Chapter 1 – Projects in Contemporary Organizations
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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
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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
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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
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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
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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!!!
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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
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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
• 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
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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:
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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
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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
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Proactive Project Life Cycle
Project Evaluation (Audit) Process
Change Management System
Project Manager Roles and Responsibilities
Closed-Loop Planning-Monitor-Control System
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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
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Projects in Contemporary
Organizations
Figure 1-3
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Projects in Contemporary
Organizations
Figure 1-4
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Projects in Contemporary
Organizations
Figure 1-5
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Projects in Contemporary
Organizations
Figure 1-6
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