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Modern Project Management
Chapter 1
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Project?
It is temporary work system constituted by
team within or across organizations to
accomplish particular tasks under time and
budget constraints
A complex, non-routine, one-time effort
limited by time, budget, resources, and
performance specifications designed to meetcustomer needs.
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Characteristics of Project
Consists of temporary activities that have
predetermined start and end dates.
Used for one off, non-repetitive items
Uses restricted time & budget.
It has a single goal or a set of goals.
It uses skills and talents from multipleprofessions and organizations.
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Examples
A market demand (e.g., a consumer product
company authorizing a project to develop a
new fruit drink for kids with less sugar in
response to an increased health awareness)
A business need (e.g., a publisher authorising
a project to write a new book to increase its
revenues)
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Examples
A customer request (e.g., an amusement parkauthorizing a company to develop a new rollercoaster)
A technological advance (e.g., an electronicsfirm authorizing a new project to develop afaster, cheaper, and smaller net book)
A legal requirement (e.g., U.S. federalgovernment authorizes a project to establishlaws for controlling the home loan system)
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Examples
A social need (e.g., a non-governmental
organization authorizing a project to raise the
awareness of donating blood)
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Project Management
Project managementis the application ofknowledge, skills and techniques to executeprojects effectively and efficiently. Its a strategic
competency for organizations, enabling them totie project results to business goals and thus,better compete in their markets.
Defining
Planning
Executing
Closing
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Program
A group of related projects managed in a
coordinated way to obtain benefits and
control not available from managing them
individually.
Characteristics of Program
Deliverable with strategic intent
Significant change in organization
Longer in duration
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Project vs. routine work
Project activities
Expand product line
Building a home Installing new
machine in factory
Developing supplychain information
system
Routine activities
General accounting
Customer service Technical support
Continuous
production
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Project Life Cycle
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Importance of Project Management
Compression of product life cycle
Knowledge Explosion
Triple Bottom Line (Planet, people, Profit)
Corporate Downsizing
Increased Customer Focus
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Project Management today-
Integrative approach
Integration (or centralization) of project
management provides senior management with:
An overview of all project management activities
A big picture of how organizational resources are used
A risk assessment of their portfolio of projects
A rough metric of the firms improvement in managing
projects relative to others in the industry
Linkages of senior management with actual project
execution management
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Major Functions of Portfolio
Management
Monitor aggregate resource levels and skills.
Balance projects in the portfolio in order torepresent a risk level appropriate to the
organization. Improve communication among all stakeholders.
Create a total organization perspective that goesbeyond silo thinking.
Improve overall management of projects overtime
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Aspects of Project Implementation
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Discussion
Individually identify projects assigned in
previous terms. Were both socio-cultural and
technical elements factors in the success or
difficulties in the projects?
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End of Chapter