Chapter 1 Project Management Concepts
Jan 21, 2016
Chapter 1Project Management Concepts
3Learning ObjectivesDefinition of a project and its attributesKey constraints within which a project must be managedHow a project is bornLife of a projectSteps involved in the PM processImplications of global project managementBenefits of project management
4Real World ExampleVignette: Irish Agency Cancels Two SAP AG ERP Projects Oct 05: Irish Health Svc Executive halted two system rolloutsPersonnel Payroll project: Launched in 95; budget of $10.7m; 3 year scheduleBy 2005, cost up to $180m; then cancelledFinancial Information Systems projectSpent $36m; expected to cost a total of $203mConsulting firm in New York was the contractor hired to implement both projectsLots of wasted time, money and effortProper project management can help prevent these failures
5Real World ExampleVignette: Maines Medical Mistake Jan 05, new Medicare claims system was introducedDesigned to process $1.5b in annual claims; cost $25mImmediately had problems with rejected claimsBy end of March, 300,000 claims had been suspendedBy the end of summer, up to nearly 650,000Patients being turned away; businesses suffering greatlySince implementation, system cost $30m; now claim most of bugs are fixedProblems: Vendor had no Medicaid system experience; used unproven technology; no backup; lack of testing & trainingPoor PM and communication: It was clear that we were missing any sort of basic management of this project
6Project, DefinedA project is: an endeavor to accomplish a specific objectivethrough a unique set of interrelated tasks and the effective utilization of resources.
7Attributes of a ProjectHas a well-defined objectiveComposed of a series of interdependent tasks Utilizes various resourcesHas a specific time frameMay be a unique or one-time endeavorHas a customerInvolves a degree of uncertainty
8Examples of ProjectsPlanning a weddingDesigning and implementing a computer systemHosting a holiday partyDesigning and producing a brochureExecuting an environmental clean-up of a contaminated siteHolding a high school reunionPerforming a series of surgeries on an accident victim
9ConstraintsScopeCostScheduleCustomer satisfaction
10Unforeseen CircumstancesUnforeseen circumstances may jeopardize achievement of the project objective.The challenge facing the project manager is to prevent, anticipate, and/or overcome such circumstances.
11The Project Life CycleProjects are born when a need is identified by the customer.Project life cycles vary in length, from a few weeks to several years.Not all projects formally go through all four phases of the project life cycle.
12Project Life Cycle: Phase 1The first phase involves the identification of a need, problem, or opportunity.The need and requirements are usually written by the customer into a document called a request for proposal (RFP).
The second phase is the development of a proposed solution to the need or problem.This phase results in the submission of a proposal.The customer and the winning contractor negotiate and sign a contract (agreement). 13Project Life Cycle: Phase 2
14Project Life Cycle: Phase 3 The third phase is performing the project.Different types of resources are utilizedResults in the accomplishment of the project objectiveIncludes:Detailed planningImplementation of the plan
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Project Life Cycle: Phase 4The final phase is terminating the project.Perform close-out activitiesEvaluate performanceInvite customer feedback
17The Project Management ProcessThe project management process means planning the work and then working the plan.
18The Project Management Process (Cont.)Clearly define the project objective. Divide and subdivide the project.Define the specific activities that need to be performed.Graphically portray the activities in a network diagram.
19The Project Management Process (Cont.)Make a time estimate.Make a cost estimate.Calculate a project schedule and budget.RESULT: BASELINE PLAN
20Controlling ProjectsEstablish a baseline plan.Monitor progress.Measure actual progress and compare it to planned progress.Take corrective action if the project is behind schedule, overrunning the budget, or not meeting technical specifications.
Global Project ManagementGlobalization adds unique challengesCultural & language differencesEconomic considerationsPolitical considerationsWorkforce availabilityTechnology & Internet help globalization and provide new opportunitiesCultural awareness and sensitivity are vital
21Benefits of Project ManagementSatisfied customersAdditional businessExpansion of career opportunities Satisfaction of being on a winning team Improved knowledge and skillsWhen projects are successful, everybody WINS
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