1 INEN 261: Week 1 Chapter 1: Projects in Contemporary Organizations Presented by: Jasim Alnahas.

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INEN 261: Week 1

Chapter 1:

Projects in Contemporary Organizations

Presented by:

Jasim Alnahas

Chapter Learning OutcomesIf you complete the given assignments for this Chapter you will:

Be able to define the word project. Understand the role of project management in

project execution. Understand project characteristics. Understand how a project progresses and the

end results of a managed project.

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Why worry about Project Management? Projects are increasingly the way we get work

done Managing a project is somewhat different than

managing routine work A body of knowledge (BoK) is growing up

around Project Management In this course we will try to expose you to some

of this information

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Introduction

Rapid growth in project management In the past, most projects were external

Building a new skyscraper New ad campaign Launching a rocket

Growth lately is in internal projects Developing a new product Opening a new branch Improving the services provided

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How Project Management Developed? Credit for the development of project

management goes to the military Navy’s Polaris program NASA’s Apollo space program Development of “smart bombs” and “missiles”

Project management has found wide acceptance in industry

It has many applications outside of construction Managing legal cases Managing new product releases

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Forces Fostering Project Management Main forces in driving the acceptance of

project management: Exponential growth of human knowledge Growing demand for a broad range of complex

goods and services Increased worldwide competition

All of these contribute to the need for organizations to do more and to do it faster

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Project Management is also Getting Smaller More people are seeing the advantages of

project management techniques The tools have become cheaper The techniques are becoming more widely

taught and written about

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Three Project Objectives: The “Triple Constraint” Time Cost Scope

Time, cost, and performance are all related to a project

Figure 1-1

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Project Success

Project efficiency Impact on the customer Business impact on the organization Opening new opportunities for the future

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Project Manager

Project manager is the key individual on a project

Project manager is like a mini-CEO

The Project Management Institute Membership

250 chapters in over 70 countries Pittsburgh at http://www.pittsburghpmi.org/ 

Global Standards Standards ensure a basic project management framework is applied

consistently worldwide.  13 global standards (including Program and Portfolio Management) A Guide to the Project Management Body of Knowledge  (PMBOK®

Guide)—Fourth Edition in Circulation Credentials (Increasingly needed for engineering positions

Project Management Professionals (PMP®) Certified Associates in Project Management (CAPM®) Program Management Professional (PgMP®) PMI Scheduling Professional (PMI-SP®) PMI Risk Management Professional (PMI-RMP®)

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Trends in Project Management Achieving strategic goals Achieving routine goals Improving project effectiveness Virtual projects Dynamic and quasi-projects

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Recent Changes in Managing Organizations

Consensual management Systems approach Projects are established in order to

accomplish set goals

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The Definition of a “Project”

“A temporary endeavor undertaken to create a unique product, service, or result.” (PMI)

Defining some similar terms Program: A set of projects Projects: Needed to achieve Program objectives Task: An element of a project Work packages: Smaller than a task

Visual Definitions of terms

Program

Project A

Project B

Project C

Task 1

Task 2

Task 3

Task 4Work Package 1

Work Package 1

Work Package 1

Work Package 1

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Characteristics of a Project Importance: Important enough in the eyes of senior management Scope: One time activity with set of well defined end results Life cycle with a finite due date: Have a start, a growth phase,

maturity, decline and end Interdependencies: Projects are overlaid over other activities in the

organization Uniqueness: Always some differences. They are not routine work. Resources: Has personnel as well as other resources Conflict: Competition for resources

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Why Project Management?

The main purpose for initiating a project is to accomplish some goal

Project management increases the likelihood of accomplishing that goal

Project management gives us someone (the project manager) to spearhead the project and to hold accountable for its completion

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Negative Side to Project Management Greater organizational complexity Higher probability organizational policy will be

violated Says managers cannot accomplish the

desired outcome Conflict

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The Project Life Cycle

Figure 1-3

.

We will quantify this curve and use it to develop a project monitoring strategy slow-rapid-slow

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Time Distribution of Project Effort

Figure 1-4

Time distribution of project effort is characterized by slow-rapid-slow

ENGR5030 21

Project Management Life Cycle

Definition Planning Implementation Delivery

Lev

el o

f ef

fort

1. Goals2. Specifications3. Scope4. Responsibilities5. Teams

1. WBS2. Budgets3. Resources4. Risks5. Schedule

1. Status reports2. Change Orders3. Quality Audits4. Contingencies

1. Train user2. Transfer documents3. Release resources4. Reassign staff5. Lessons learned

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In all phases of the Project Life Cycle the Project Manager is trying to meet the same 3 goals: Meet performance

goals Meet schedule

commitments Meet budget

constraints

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The Project Life Cycle It is essential for the Project Manager

and team to understand the characteristics of the life cycle curve for their project

The distinction between the two life cycles plays a critical role in the development of budgets and schedules for the project

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The Project Life Cycle Risk during project life cycle

With most projects there is some uncertainty about the ability to meet project goals

Uncertainty of outcome is greatest at the start of a project

Uncertainty decreases as the project moves toward completion

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Risk During at the Start of the Life Cycle

Figure 1-6

Cost variation grows as one moves further away from the time of the estimate

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Risk During the Life Cycle

Figure 1-7

Uncertainty decreases as the project moves toward completion because we refine our estimates

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Part I: Project Initiation

Projects in Contemporary Organizations Strategic Management and Project

Selection The Project Manager Managing Conflict and the Art of

Negotiation The Project in the Organizational Structure

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Part II: Project Planning

Project Activity and Risk Planning Budgeting: Estimating Costs and Risks Scheduling Resource Allocation

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Part III: Project Execution

Monitoring and Information Systems Project Control Project Auditing Project Termination

Summary of Chapter 1 A Project is a temporary endeavor undertaken to

create a unique product, service or result. The three prime objectives of project management

are:1. To meet specified performance2. To do it within specified costs3. Complete on schedule

Projects are characterized by a singleness of purpose, a definite life cycle, complex interdependencies, some or all unique elements, and an environment of conflict

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Summary of Chapter 1 (continued) Projects often start slow, build up speed

while using considerable resources, and then slow down as completion nears

As progress is made on a project, there becomes less uncertainty in what the final deliverable will achieve in meeting project goals

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