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PM 01 - Introduction to Project Management

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Institut Teknologi Bandung
Institut Teknologi Bandung

Project management has grown significantly due to factors like increasing knowledge, demand for complex goods and services, and competitive global markets. It is used widely in industries like construction, legal cases, and new product development. The Project Management Institute (PMI) was established in 1969 and has seen exponential membership growth, indicative of the increasing use of project management. A project is defined as a temporary endeavor undertaken to create a unique product or service with clear start and end dates. Project management involves planning, implementing, and delivering projects according to cost, time and quality objectives.

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Project Management: A Managerial ApproachChapter 1 – Projects in Contemporary Organizations
OverviewProject Management Growth FactorsProject AspectsProject CriteriaProject Life CycleProject Management Profession
IntroductionMuch of project management developed by the militaryNavy’s Polaris programNASA’s space programStrategic defense initiativeProject management has found wide acceptance in industry External vs internal to organisationIt has many applications outside of constructionManaging legal casesManaging new product releases
Forces Of Project ManagementForces driving Project Management:1. exponential expansion of human knowledge -> dev, prod & dist.2. growing demand for a broad range of complex, sophisticated, customized goods and services -> product design an integ. & inherent part of prod and dist3. evolution of worldwide competitive markets for the production and consumption of goods and services -> what, when and how to distribute output4. Expansion of global markets Team-based problem solving v. individual All of these contribute to the need for organizations to do more and to do it fasterProject management is one way to do more faster
Projects Tend to be LargeProjects tend to be largeThe Channel Tunnel, or ChunnelDenver International AirportPanama Canal expansion projectThree Gorges Dam, ChinaProjects are getting larger over timeFlying: balloons  planes  jets  rockets  reusable rocketsThe more we can do, the more we try to do
Project Management Also Getting SmallerMore people are seeing the advantages of project management techniquesThe tools are become cheaperThe techniques are becoming more widely taught and written about
The Professionalism of Project ManagementComplexity of problems facing the project managerGrowth in number of project oriented organizationsThe Project Management Institute (PMI) was established in 1969By 1990 it had 7,500 members1995, over 17,000 members1998--exploded to over 44,000 membersThis 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
Project ManagerProject manager is the key individual on a projectProject manager is like a mini-CEOWhile project manager always has responsibility, may not have necessary authority
Trends in Project ManagementAchieving strategic goalsAchieving routine goalsImproving project effectivenessVirtual projectsQuasi-projects
Organizational ImperativesTraditional hierarchical management decliningConsensual management increasingIncreasing reliance on systems engineeringProjects integral to organizational strategy
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 projectsTask - set of activities comprising a projectWork Packages - division of tasksWork Units - division of work packagesA specific, finite task to be accomplished
The Definition of a “Project”Definition used by PMI:
Project Management A Working DefinitionProject:A problem with a known solution scheduled for completion—unique and non-routine activitiesProject Management:The science and art of solving the problem within predetermined time and resource parameters
Characteristics of a ProjectTemporaryHave a supported purpose/importancePerformance specifications (form, fit, function)Have a life cycle with finite due dateInterdependenciesUniquenessResource requirements and tradeoffsStakeholder Conflict
Quasi-Projects and Fuzzy GoalsTasks without Specific TargetsNo Who, What, When, Where, How MuchImplied Performance, Cost, Time Constraints“Projects” to Determine Project ScopeWarning: If these Become Projects, Expect Delays, Cost Overruns, Dissatisfied Customers
Objectives of a ProjectProject Objectives:PerformanceTimeCostExpectations of clients inherent part of the project specificationsThere are ancillary (process) goals:Improving the organisation’s project management competency & methodsIndividual managerial experience gainedThe health of the project team and the organisationEnvironment
Objectives of a Project3 Project Objectives:
Why Project Management?The main purpose for initiating a project is to accomplish some goalProject management increases the likelihood of accomplishing that goalProject management gives us someone (the project manager) to spearhead the project and to hold accountable for its completion
Why Project Management?Companies have experienced:Better customer relationsShorter overall delivery timesLower costs and higher profit marginsHigher quality and reliabilityHigher worker morale
Why (not) Project Management?Companies have also experienced some negatives:Greater organizational complexityIncreased likelihood of organizational policy violationsHigher costsMore management difficultiesLow personnel utilizationSays managers cannot accomplish the desired outcomeConflict
The Project Life CycleStages of a Conventional Project:Slow beginningBuildup of sizePeakBegin a declineTermination
The Project Life Cycle
The Project Life CycleTime distribution of project effort is characterized by slow-rapid-slow
DefinitionPlanningImplementationDeliveryLevel of effort1. Goals2. Specifications3. Scope4. Responsibilities5. Teams1. WBS2. Budgets3. Resources4. Risks5. Schedule1. Status reports2. Change Orders3. Quality Audits4. Contingencies1. Train user2. Transfer documents3. Release resources4. Reassign staff5. Lessons learnedProject Management Life Cycle
Proactive Project Life CycleHighProject Manager Roles and ResponsibilitiesLevelof ValueofEffortChange Management SystemClosed-Loop Planning-Monitor-Control SystemProject Evaluation (Audit) ProcessLow Define Plan Implement DeliveryScope WBS/OBS/Schedule Resource (Re)allocation “Learn Curve” Tradeoffs Detailed Budget Cost Containment Final Report
The Project Life CycleProjects also exist which do not follow the conventional project life cycleComprised of subunits that have little use as a stand alone unit, yet become useful when put together
The Project Life CycleUnlike the more conventional life cycle, continued inputs of effort at the end of the project produce significant gains in returns (eg. Baking a cake, software project, chemical reaction project, writing a book/thesis)
PM 01 - Introduction to Project Management
The Project Life CycleRisk during project life cycleWith most projects there is some uncertainty about the ability to meet project goalsUncertainty of outcome is greatest at the start of a projectUncertainty decreases as the project moves toward completion
Project Life Cycle:Reduce Uncertainty of Cost Estimate
END

More Related Content

PM 01 - Introduction to Project Management

  • 1. Project Management: A Managerial ApproachChapter 1 – Projects in Contemporary Organizations
  • 2. OverviewProject Management Growth FactorsProject AspectsProject CriteriaProject Life CycleProject Management Profession
  • 3. IntroductionMuch of project management developed by the militaryNavy’s Polaris programNASA’s space programStrategic defense initiativeProject management has found wide acceptance in industry External vs internal to organisationIt has many applications outside of constructionManaging legal casesManaging new product releases
  • 4. Forces Of Project ManagementForces driving Project Management:1. exponential expansion of human knowledge -> dev, prod & dist.2. growing demand for a broad range of complex, sophisticated, customized goods and services -> product design an integ. & inherent part of prod and dist3. evolution of worldwide competitive markets for the production and consumption of goods and services -> what, when and how to distribute output4. Expansion of global markets Team-based problem solving v. individual All of these contribute to the need for organizations to do more and to do it fasterProject management is one way to do more faster
  • 5. Projects Tend to be LargeProjects tend to be largeThe Channel Tunnel, or ChunnelDenver International AirportPanama Canal expansion projectThree Gorges Dam, ChinaProjects are getting larger over timeFlying: balloons  planes  jets  rockets  reusable rocketsThe more we can do, the more we try to do
  • 6. Project Management Also Getting SmallerMore people are seeing the advantages of project management techniquesThe tools are become cheaperThe techniques are becoming more widely taught and written about
  • 7. The Professionalism of Project ManagementComplexity of problems facing the project managerGrowth in number of project oriented organizationsThe Project Management Institute (PMI) was established in 1969By 1990 it had 7,500 members1995, over 17,000 members1998--exploded to over 44,000 membersThis 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
  • 8. Project ManagerProject manager is the key individual on a projectProject manager is like a mini-CEOWhile project manager always has responsibility, may not have necessary authority
  • 9. Trends in Project ManagementAchieving strategic goalsAchieving routine goalsImproving project effectivenessVirtual projectsQuasi-projects
  • 10. Organizational ImperativesTraditional hierarchical management decliningConsensual management increasingIncreasing reliance on systems engineeringProjects integral to organizational strategy
  • 11. 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 projectsTask - set of activities comprising a projectWork Packages - division of tasksWork Units - division of work packagesA specific, finite task to be accomplished
  • 12. The Definition of a “Project”Definition used by PMI:
  • 13. Project Management A Working DefinitionProject:A problem with a known solution scheduled for completion—unique and non-routine activitiesProject Management:The science and art of solving the problem within predetermined time and resource parameters
  • 14. Characteristics of a ProjectTemporaryHave a supported purpose/importancePerformance specifications (form, fit, function)Have a life cycle with finite due dateInterdependenciesUniquenessResource requirements and tradeoffsStakeholder Conflict
  • 15. Quasi-Projects and Fuzzy GoalsTasks without Specific TargetsNo Who, What, When, Where, How MuchImplied Performance, Cost, Time Constraints“Projects” to Determine Project ScopeWarning: If these Become Projects, Expect Delays, Cost Overruns, Dissatisfied Customers
  • 16. Objectives of a ProjectProject Objectives:PerformanceTimeCostExpectations of clients inherent part of the project specificationsThere are ancillary (process) goals:Improving the organisation’s project management competency & methodsIndividual managerial experience gainedThe health of the project team and the organisationEnvironment
  • 17. Objectives of a Project3 Project Objectives:
  • 18. Why Project Management?The main purpose for initiating a project is to accomplish some goalProject management increases the likelihood of accomplishing that goalProject management gives us someone (the project manager) to spearhead the project and to hold accountable for its completion
  • 19. Why Project Management?Companies have experienced:Better customer relationsShorter overall delivery timesLower costs and higher profit marginsHigher quality and reliabilityHigher worker morale
  • 20. Why (not) Project Management?Companies have also experienced some negatives:Greater organizational complexityIncreased likelihood of organizational policy violationsHigher costsMore management difficultiesLow personnel utilizationSays managers cannot accomplish the desired outcomeConflict
  • 21. The Project Life CycleStages of a Conventional Project:Slow beginningBuildup of sizePeakBegin a declineTermination
  • 23. The Project Life CycleTime distribution of project effort is characterized by slow-rapid-slow
  • 24. DefinitionPlanningImplementationDeliveryLevel of effort1. Goals2. Specifications3. Scope4. Responsibilities5. Teams1. WBS2. Budgets3. Resources4. Risks5. Schedule1. Status reports2. Change Orders3. Quality Audits4. Contingencies1. Train user2. Transfer documents3. Release resources4. Reassign staff5. Lessons learnedProject Management Life Cycle
  • 25. Proactive Project Life CycleHighProject Manager Roles and ResponsibilitiesLevelof ValueofEffortChange Management SystemClosed-Loop Planning-Monitor-Control SystemProject Evaluation (Audit) ProcessLow Define Plan Implement DeliveryScope WBS/OBS/Schedule Resource (Re)allocation “Learn Curve” Tradeoffs Detailed Budget Cost Containment Final Report
  • 26. The Project Life CycleProjects also exist which do not follow the conventional project life cycleComprised of subunits that have little use as a stand alone unit, yet become useful when put together
  • 27. The Project Life CycleUnlike the more conventional life cycle, continued inputs of effort at the end of the project produce significant gains in returns (eg. Baking a cake, software project, chemical reaction project, writing a book/thesis)
  • 29. The Project Life CycleRisk during project life cycleWith most projects there is some uncertainty about the ability to meet project goalsUncertainty of outcome is greatest at the start of a projectUncertainty decreases as the project moves toward completion
  • 30. Project Life Cycle:Reduce Uncertainty of Cost Estimate
  • 31. END