01 - Introduction & Overview

A GUIDE TO THE

PROJECT MANAGEMENT BODY OF KNOWLEDGE

Introduction & Overview

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Introduction & Overview

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1. Introduction & Overview 1.1. Definition of a Project A project is a unique venture with a beginning and an end, conducted by people to meet established goals within parameters of cost, schedule and quality. A complex, non-routine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs. Examples of projects  Split the atom  Channel between England and France  Introduce Windows XP 3

1. Introduction & Overview 1.1. Definition of a Project (Cont’d) “A project is an Endeavour in which human, financial and material resources are organized in a novel way to undertake a unique scope of work, of given specification, within constraints of cost and time, so as to achieve beneficial change defined by quantitative and qualitative objectives”. Turner, R J (1999), ‘Handbook of project-based management

“A project is a series of tasks, arranged in a defined sequence or relationship, that produce a pre-defined output or effect. A project always has a start, middle, and an end” PMI’s PMBOK

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1. Introduction & Overview 1.1. Definition of a Project (Cont’d) A project is a temporary endeavor undertaken to create a unique product, service or result.  “Temporary”: has a definite beginning and a definite end.  “Unique product, service or result”: a project creates unique deliverables, which are products, services or results. Uniqueness is an important characteristics of project deliverables.

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1. Introduction & Overview 1.1. Definition of a Project (Cont’d) “Progressive elaboration”: is a characteristic of a project that accompanies the concepts of temporary and unique.  “Progressive”: Developing in steps and continuing steadily by increments.  “Elaboration”: Worked out with care and detail; developed thoroughly.

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1. Introduction & Overview 1.2. Project Management Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements. Project management is accomplished through the application and integration of the project management processes of initiating, planning, executing, monitoring and controlling, and closing. The project manager is the person accomplishing the project objectives.

responsible

for

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1. Introduction & Overview 1.2. Project Management (Cont’d) Project managers or the organization can divide projects into phases to provide better management control with appropriate links to the ongoing operations of the performing organization. Collectively, these phases are known as the project life cycle.

Figure 2-1Typical Project Cost and Staffing Level Across the Project Life Cycle

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1. Introduction & Overview 1.2. Project Management (Cont’d)

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1. Introduction & Overview 1.2. Project Management (Cont’d) Figure 2-3.Typical Sequence of Phases in a Project Life Cycle

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1. Introduction & Overview 1.2. Project Management (Cont’d) Managing a project includes:  Identifying requirements  Establishing clear and achievable objectives  Balancing the competing demands for quality, scope, time and cost, to produce a quality product or service  Adapting the specifications, plans, and approach to the different concerns and expectations of the various stakeholders.

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1. Introduction & Overview 1.3. General Characteristics of Projects           

Has an established and definable purpose or objective. Unique or temporary Has a defined life-cycle with a beginning and an end. Not part of the main organizational structure, however it typically requires across-the-organizational participation. Involves doing something never been done before. Has specific time, cost, & performance requirements & constraints. Broken into tasks & subtasks. Involving uncertainty and risk. Multi-skilled groups (cuts across organizational lines). Stakeholders issues (e.g. conflicting agendas) Traditional management functions of planning, organizing, motivating, directing, and controlling apply. 12

1. Introduction & Overview 1.4. Project vs. Operational Work Work performed by organizations can be categorized as either projects or operations, however the two share many of the following characteristics:  Performed by people  Constrained by limited resources  Planned, executed and controlled

Operations are ongoing and repetitive Projects are temporary and unique

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1. Introduction & Overview 1.4. Project vs. Operational Work (Cont’d) Project

Operational Work

1. Unique (new process or product)

1. Repeat process or product

2. One objective

2. Several objectives

3. One shot, limited life span

3. On-going day to day activities

4. More heterogeneous

4. People are homogeneous

5. Systems must be created

5. Systems in place

6. Performance, cost & time less certain

6. Performance, cost, & time known

7. Outside of line organization

7. Part of the line organization

8. Variable demand for resources

8. Stable demand for resources

9. Unique and separate from normal organization work

9. Use existing systems, properties, and capabilities

10. Sponsor - Multiple stakeholders

10. Supervisor - Department 14

1. Introduction & Overview 1.4. Project vs. Operational Work (Cont’d)

“Projects, rather than repetitive tasks, are now the basis for most value-added activities in business” -Tom Peters

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1. Introduction & Overview 1.4. Project vs. Process (Cont’d) Projects

Routine, Repetitive Work

1. Writing a term paper

1. Taking class notes

2. Setting up a sales kiosk for a professional accounting meeting

2. Daily entering sales receipts into the accounting ledger

3. Developing a supply-chain information system

3. Responding to a supply-chain request

4. Writing a new piano piece

4. Practicing scales on the piano

5. Designing an iPod that is approximately 2 X 4 inches, interfaces with PC, and stores 10,000 songs

5. Routine manufacture of an Apple iPod

6. Wire-tag projects for GE and Wal-Mart

6. Attaching tags on a manufactured product 16

1. Introduction & Overview 1.5. Importance of a Project Management Factors Leading to the Increased Use of Project Management, are:  Compression of the product life cycle  Global competition  Knowledge explosion  Corporate downsizing  Increased customer focus  Small projects that represent big problems

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1. Introduction & Overview 1.6. Project Management Constraints Triple Constraint: project scope, time and cost

Scope (Quality)

Cost

Resources

st Co

Ti m e

 Project quality is affected by these three factors  High quality projects deliver the required product, service or result within scope, on time and within budget  Any change in one of the three factors at least one other factor is likely to be affected

e op y) Sc t ali u q (o r

Time 18

1. Introduction & Overview 1.6. Project Management Constraints (Cont’d) Defining Success Project completion  Within Time,  Within Cost,  Within Quality, and  Accepted by the Customer.

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1. Introduction & Overview 1.7. Challenges of a Project Manager The Project Manager  Manages temporary, non-repetitive activities and frequently acts independently of the formal organization. • Marshals resources for the project • Provides direction, coordination, and integration to the project team • Manages a diverse set of project stakeholders • Dependent upon others for technical answers • Is responsible for performance and success of the project  Must induce the right people at the right time to address the right issues and make the right decisions. 20

1. Introduction & Overview 1.7. Challenges of a Project Manager (Cont’d) Figure 1-2. Areas of Expertise Needed by the Project Team

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1. Introduction & Overview 1.7. Challenges of a Project Manager (Cont’d)  Project Planning: • Definition of work requirements • Definition of quantity and quality of work • Definition of resources needed  Project Monitoring: • Tracking progress • Comparing actual outcome to predicted outcome • Analyzing impact • Making adjustments

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1. Introduction & Overview 1.8. Project Management Certifications

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