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Introduction to Project Management

Chapter 1 Contemporary Project Management Kloppenborg

2009 South-Western, a part of Cengage Learning

At the end of this chapter


Describe reasons why more organizations are using project management and when use of project management techniques are appropriate. Define a project in your own words using characteristics that are common to most projects. Delineate measures of project success and failure. State common reasons for project failure or success.

At the end of this chapter


Describe major activities and deliverables at each project life cycle stage. List and describe several issues that pertain to each of the nine areas of the project management body of knowledge (PMBOK). Identify key project roles and describe responsibilities for each.

What is a project?
Project a temporary endeavor undertaken to create a unique product, service, or result. PMBOK Guide A project requires an organized set of work efforts. Projects require a level of detail that is progressively elaborated upon as more information is discovered. Projects are subject to limitations of time and resources such as money and people. Projects have a defined beginning and ending.

What is a project?
A project has a unique combination of stakeholders
stakeholders persons or organizations that are
actively involved in the project, or whose interests may be positively or negatively affected by the project.

PMBOK Guide

Project Management (PM)


Project management includes work processes that initiate, plan, execute, and close work Work processes require tradeoffs among the scope, quality, cost, and schedule of the project PM includes administrative tasks for planning, documenting, and controlling work PM includes leadership tasks for visioning, motivating, and promoting work associates.
Project management the application of knowledge, skills, tools and techniques to project activities to meet project requirements. PMBOK Guide

History of Project Management


PM emerged as a formal discipline in the 1950s Techniques for planning and controlling schedules and costs were developed for huge aerospace and construction projects in the 1950s and 1960s Early PM involved determining project schedules based on project activities Manufacturing, research and development, government, and construction projects refined management techniques

History of Project Management


Software companies offered software for planning and controlling project costs and schedules in the 1980s and 1990s Risk management techniques for complex projects have been applied to less complex projects Communication and leadership have been recognized as playing a major role in project success

What Makes Projects Different?


Projects vs. operations Soft skills and hard skills Authority and responsibility

Projects vs. Operations


Projects are temporary Projects have both routine and unique characteristics Operations consist of the ongoing work needed to ensure that an organization continues to function effectively

Soft Skills and Hard Skills


Soft skills include communication and leadership activities. Hard skills include risk analysis, quality control, scheduling, and budgeting work A successful project manager needs both soft and hard skills along with the judgment of when each is more necessary. Training, experience, and mentoring are instrumental in developing necessary skills.

Authority and Responsibility


Projects are most effectively managed with one person being assigned accountability Project managers negotiate with functional managers A project manager needs to develop strong communication and leadership skills in order to persuade subordinates to focus on the project when other work also beckons.
Functional manager someone with management authority over an organizational unit. The manager of any group that actually makes a product or performs a service. PMBOK Guide

Project Life Cycle


All projects go through predictable stages called a project life cycle. Life cycle allows for control to assure that the project is proceeding in a satisfactory manner and that the results are likely to serve its customers intended purpose
Project life cycle a collection of generally sequential project phases whose name and number are determined by the control needs of the organization or organizations involved in the project. PMBOK Guide customer the person or organization that will use the projects product or service or result. PMBOK Guide

Project Life Cycle Stages


Initiatingwhen a project is proposed, planned at a high level, and key participants commit to it in broad terms Planningstarts after the initial commitment, includes detailed planning, and ends when all stakeholders accept the entire detailed plan Executingincludes authorizing, executing, monitoring, and controlling work until the customer accepts the project deliverables Closingall activities after customer acceptance to ensure project is completed, lessons are learned, resources are reassigned, and contributions are recognized.

Project Life Cycle Stages


Most companies insist that a project must pass an approval of some kind to move from one stage to the next The project life cycle is highly formalized and very specific

Project Life Cycle Stages

Life Cycle for Quality Improvement Projects

Project Goals and Constraints


Projects are undertaken to accomplish specific goals Scope and quality measure performance and should result in outputs that satisfy customers Consider scope and quality subject to constraints of time and cost
Scope the sum of all products, services, and results to be provided by the project. PMBOK Guide Quality the degree to which a set of inherent characteristics fulfills requirements. PMBOK Guide

Project Goals and Constraints


Obstacles or challenges may limit the ability to perform Opportunities may allow projects to exceed original expectations. Project Managers (PMs) decide which goals and constraints take precedence

Project Customer Tradeoff Matrix

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Understanding Projects
Several frameworks that help a person understand project management include:
The professional association Project Management Institute (PMI); The Project Management Body of Knowledge (PMBOK) How companies use project management as a system What constitutes both project success and failure The range of project types commonly used in business today The hierarchical manner in which portfolios, programs, projects and sub-projects are organized.

The Project Management Institute


The largest professional organization Publishes and regularly updates A Guide to the Project Management Body of Knowledge (PMBOK Guide) Established a professional certification - Project Management Professional (PMP) Established a second certificationCertified Associate in Project Management (CAPM)

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Project Management Body of Knowledge (PMBOK)


Consists of a project life cycle, five process groups, and nine knowledge areas

Project management process group a logical grouping of the project management processes described in the PMBOK Guide. Collectively, these five process groups are required for any project, have clear dependencies, and must be performed in the same sequence on each project, independent of the application area or the specifics of the applied project life cycle. PMBOK Guide

PMBOK Process Groups


Initiatingdefines and authorizes a project or a project phase Planningdefines and refines objectives and plans actions to achieve objectives Executingdirects and manages people and other resources to accomplish project work Monitoring and controllingcollects data and checks progress to determine any needed corrective actions Closingformalized acceptance of project outcomes and ending the project

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PMBOK Knowledge Areas


Scope managementdetermining all the work and only the work necessary for project completion; Time managementdefining, sequencing, estimating duration, and resourcing work activities as well as developing and controlling the schedule; Cost managementplanning, estimating, budgeting, and controlling costs; Quality managementquality planning, assurance, and control; Human Resources managementacquiring, developing, and managing the project team; Communications managementgenerating, collecting, disseminating, storing, and disposing of timely and appropriate project information; Risk managementrisk identification, analysis, response planning, and monitoring and control; Procurement managementpurchasing or acquiring product and services as well as contract management; and Integration managementunifying and coordinating the other knowledge areas by creating and using tools such as charters, project plans, and change control.

Project Management System


Identify potential projects Prioritize among the potential projects
What value does each potential project bring to the organization? Are the demands of performing each project understood? Are the resources needed to perform the project available? Is there enthusiastic support both from the external customers and from one or more internal champions? Which projects will best help the organization achieve its goals?

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Successful Projects
Project success is creating deliverables that include all of the agreed upon features Outputs please the projects customers. Customers use the outputs effectively as they do their work (meet quality goals) The project should be completed on schedule and on budget (meet time and cost constraints). Completed without heroics People who work on the project should learn new skills and/or refine existing skills. Organizational learning should take place and be captured for future projects. Reap business-level benefits such as development of new products, increased market share, increased profitability, decreased cost, etc.

Why Projects Fail


Not enough resources are available for project completion. Not enough time has been given to the project. Project expectations are unclear. Changes in the scope are not understood or agreed upon by all parties involved. Stakeholders disagree regarding expectations for the project. Adequate project planning is not used.

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Types of Projects
Classifying by industry Classifying by size Classifying by timing of determination of project scope Classifying by application

Classifying by Industry
Projects in different industries often have unique requirements PMI specific interest groups

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Classifying by Size
Large projects often require more detailed planning and control

Classifying by Timing of Determination of Project Scope


How early in the project the project manager and team are likely to be able to determine what the project scope will be All projects require planning and control The art of project management deals with when to use certain techniques, how much detail to use, and how to tailor the techniques to the needs of a specific project.

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Scalability of Project Tools


All projects require
Determination of the wants and needs of the customer(s) Understanding of the amount of work involved Determination of a budget and schedule Decisions about available workers and who will do which tasks Management until the owner accepts the project results

Projects are scaled up or down to meet the complexity of the task

Portfolios
Multiple projects may be underway at the same time Each project in the portfolio should have a direct impact on the organization.
Portfolio a logical grouping of the project management processes described in the PMBOK Guide. Collectively, these five process groups are required for any project, have clear dependencies, and must be performed in the same sequence on each project, independent of the application area or the specifics of the applied project life cycle. PMBOK Guide

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Portfolios
Portfolios should be balanced including:
large and small projects high-risk high-reward and low-risk projects projects that can be completed quickly and some that will take substantial time to finish.

Programs
Programs may last as long as the organization lasts Specific projects within a program are of limited duration Project managers are concerned with the tradeoffs of cost, schedule, scope, and quality on their individual projects The program manager is concerned with making tradeoffs between projects for the maximum benefit of the entire program.
Program a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. Programs may include elements of work outside of the scope of discrete projects in the program. PMBOK Guide

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Programs
Programs deal with a specific group of related projects A portfolio deals with all of an organizations projects. A portfolio can include multiple programs as well as multiple projects. Portfolios and programs are managed at a level above the typical project manager

Projects and Subprojects


A large project may be composed of multiple subprojects

Subproject a smaller portion of the overall project created when a project is subdivided into more manageable components or pieces. PMBOK Guide

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Portfolio, Program, Project, and Subproject Relationships

Project Roles
Project Executive-Level Roles Project Management-Level Roles Project Associate-Level Roles

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Project Executive-Level Roles


The steering team
The top leader (CEO) and his/her direct reports Select, prioritize, and resource projects in accordance with the organizations strategic planning Ensure that accurate progress is reported and necessary adjustments are made.

Project Executive-Level Roles


The chief projects officer
Keeper, facilitator, and improver of the project management system Responsible for project standards, methods, training, documentation Either on the leadership team or one rung down in the organization
Project Management Office (PMO) an organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects within its domain. The responsibilities of the PMO can range from providing project management support functions to actually being responsible for the direct management of a project. PMBOK Guide

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Project Executive-Level Roles


The sponsor
The sponsor is often a member of the leadership team Has a strong interest in having the project succeed Some financial control Clout in the organization The power of influence Takes an active role in chartering the project and reviewing progress reports Takes a behind-the-scenes role in mentoring and assisting the project manager throughout the project life.

Sponsor the person or group that provides the financial resources, in cash or in kind, for the project. PMBOK Guide

Project Management-Level Roles


Project manager
Directly accountable for the project results, schedule, and budget The main communicator Responsible for the planning and execution of the project Works on the project from start to finish. The project manager often must get things done through the power of influence since his or her formal power may be limited.
Project manager the person assigned by the performing organization to achieve the project objectives. PMBOK Guide

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Project Management-Level Roles


Functional manager
The department headsthe ongoing managers of the organization Determine how the work of the project is to be accomplished Supervise that work Negotiate with the project manager regarding which workers are assigned to the project

Project Management-Level Roles


Facilitator
Helps the project manager with the process of running meetings and making decisions Frees the project manager to concentrate on the content of the project The facilitator concentrates on the process. A facilitator helps the PM understand organizational politics and provides suggestions on how to handle situations.

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Project Management-Level Roles


Senior customer representative
Ensures that the needs and wants of the various constituents in the customers organization are identified and prioritized Ensures that project progress and decisions continually support the customers desires.

Project Associate-Level Roles


Core team member
People assigned to a project from start to finish The core team does most of the planning and makes most of the project level decisions. A small core team is ideal since people will then be less likely to fight for turf. Projects often require help from other people during busy times.

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Project Associate-Level Roles


Subject matter experts
Temporary members that are brought on board during busy times Used on an as-needed basis. Not present during the charter development and signing May have neither dedication to nor detailed knowledge of the project.

Overview of the Book


Project management is both integrative and iterative This book has three major parts
Organizing and Initiating Projects Planning Projects Performing Projects

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Part I - Organizing and Initiating Projects


Project management basics and organization
Project selection and prioritization Chapter 2 Organizational structure, organizational culture, project life cycle, and project management role Chapter 3

Getting a project initiate


Chartering projects Chapter 4
Project charter a document issued by the project initiator or sponsor that formally authorizes the existence of a project, and provides the project manager with the authority to apply organizational resources to project activities. PMBOK Guide

Part II Planning Projects


Identify project stakeholders, their wants and needs, and how to prioritize decisions among them Chapter 5 How to determine the project scope and outline it in the work breakdown structure (WBS) Chapter 6
Work breakdown structure (WBS) a deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables. It organizes and defines the total scope of the project. Each descending layer represents an increasingly detailed definition of the project work. PMBOK Guide

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Part II Planning Projects


Scheduling projects Chapter 7 Scheduling resources on projects Chapter 8 Project budgeting Chapter 9 Risk planning Chapter 10 Project Quality Chapter 11

Project schedule the planned dates for performing schedule activities and the planned dates for meeting schedule milestones. PMBOK Guide Budget the approved estimate for the project or any work breakdown structure component or any schedule activity. PMBOK Guide

Part III Performing Projects


Project supply chain management Chapter 12 Performing projects Chapter 13 Monitoring and controlling project work Chapter 14 Controlling the human side and finishing projects Chapter 15

Monitor and control project work the process of monitoring and controlling the processes required to initiate, plan, execute, and close a project to meet the performance objectives.. PMBOK Guide Close project the process of finalizing all activities across all of the project process groups to formally close a project or phase. PMBOK Guide

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Summary
A project is an organized set of work efforts undertaken to produce a unique output subject to limitations of time and resources such as money and people Project management includes work processes that initiate, plan, execute, control, and close project work. Tradeoffs must be made between the scope, quality, cost, and schedule All projects, regardless of size, complexity, or application, need to be planned and managed. PMI is a very large professional organization devoted to promoting and standardizing project management understanding and methods

Summary
A Guide to the Project Management Body of Knowledge (PMBOK Guide), is composed of five process groups: initiating, planning, executing, monitoring and controlling, and closing along with nine knowledge areas: cost, time, scope, quality, risk, communications, Human Resources, procurement, and integration. Successful projects require an understanding of what project success is and what drives it Successful projects require an understanding of project failure and its major causes. Project management requires an understanding of the various executive, managerial, and associate roles in project management

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