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2009 South-Western, a part of Cengage Learning

Introduction to ProjectManagement

Chapter 1

Contemporary Project Management

Kloppenborg

At the end of this chapter

Describe reasons why more organizations areusing project management and when use of

project management techniques are appropriate.

Define a project in your own words usingcharacteristics that are common to mostprojects.

Delineate measures of project success andfailure.

State common reasons for project failure orsuccess.


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At the end of this chapter Describe major activities and deliverables at

each project life cycle stage. List and describe several issues that pertain to

each of the nine areas of the projectmanagement body of knowledge (PMBOK).

Identify key project roles and describeresponsibilities for each.

What is a project?

A project requires an organized set of work

efforts. Projects require a level of detail that is

progressively elaborated upon as moreinformation is discovered.

Projects are subject to limitations of time andresources such as money and people.

Projects have a defined beginning and ending.

Project a temporary endeavor undertaken tocreate a unique product, service, or result.PMBOK Guide


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What is a project?

A project has a unique combination ofstakeholders

stakeholders persons or organizations that areactively involved in the project, or whose interests may bepositively or negatively affected by the project.

PMBOK Guide

Project Management (PM)

Project management includes work processesthat initiate, plan, execute, and close work

Work processes require tradeoffs among the

scope, quality, cost, and schedule of the project PM includes administrative tasks for planning,

documenting, and controlling work

PM includes leadership tasks for visioning,

motivating, and promoting work associates.

Project management the application of knowledge, skills,tools and techniques to project activities to meet project

requirements. PMBOK Guide


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History of Project Management PM emerged as a formal discipline in the 1950s

Techniques for planning and controllingschedules and costs were developed for hugeaerospace and construction projects in the1950s and 1960s

Early PM involved determining project schedulesbased on project activities

Manufacturing, research and development,government, and construction projects refinedmanagement techniques

History of Project Management

Software companies offered software forplanning and controlling project costs and

schedules in the 1980s and 1990s

Risk management techniques for complexprojects have been applied to less complexprojects

Communication and leadership have beenrecognized as playing a major role in projectsuccess


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What Makes Projects Different?

Projects vs. operations

Soft skills and hard skills

Authority and responsibility

Projects vs. Operations

Projects are temporary

Projects have both routine and uniquecharacteristics

Operations consist of the ongoing work neededto ensure that an organization continues to

function effectively


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Soft Skills and Hard Skills

Soft skills include communication and leadership

activities.

Hard skills include risk analysis, quality control,

scheduling, and budgeting work

A successful project manager needs both soft

and hard skills along with the judgment of when

each is more necessary. Training, experience, and mentoring are

instrumental in developing necessary skills.

Authority and Responsibility

Projects are most effectively managed with oneperson being assigned accountability

Project managers negotiate with functional

managers A project manager needs to develop strong

communication and leadership skills in order topersuade subordinates to focus on the projectwhen other work also beckons.

Functional manager someone with management authorityover an organizational unit. The manager of any group that

actually makes a product or performs a service. PMBOK Guide


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Project Life Cycle

All projects go through predictable stages called

a project life cycle.

Life cycle allows for control to assure that the

project is proceeding in a satisfactory mannerand that the results are likely to serve itscustomers intended purpose

Project life cycle a collection of generally sequential projectphases whose name and number are determined by the control

needs of the organization or organizations involved in the

project. PMBOK Guide

customer the person or organization that will use the projectsproduct or service or result. PMBOK Guide

Project Life Cycle Stages

Initiatingwhen a project is proposed, planned at ahigh level, and key participants commit to it in broadterms

Planningstarts after the initial commitment, includesdetailed planning, and ends when all stakeholders

accept the entire detailed plan Executingincludes authorizing, executing, monitoring,

and controlling work until the customer accepts theproject deliverables

Closingall activities after customer acceptance toensure project is completed, lessons are learned,resources are reassigned, and contributions arerecognized.


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Most companies insist that a project must pass

an approval of some kind to move from onestage to the next

The project life cycle is highly formalized andvery specific



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Life Cycle for Quality Improvement

Projects

Project Goals and Constraints

Projects are undertaken to accomplish specificgoals

Scope and quality measure performance and

should result in outputs that satisfy customers Consider scope and quality subject to

constraints of time and cost

Scope the sum of all products, services, and results to

be provided by the project. PMBOK Guide

Quality the degree to which a set of inherentcharacteristics fulfills requirements. PMBOK Guide


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Project Goals and Constraints

Obstacles or challenges may limit the ability to

perform

Opportunities may allow projects to exceed

original expectations.

Project Managers (PMs) decide which goals and

constraints take precedence

Project Customer Tradeoff Matrix


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Understanding Projects Several frameworks that help a person understand

project management include:

The professional association Project Management Institute(PMI);

The Project Management Body of Knowledge (PMBOK)

How companies use project management as a system

What constitutes both project success and failure

The range of project types commonly used in business today

The hierarchical manner in which portfolios, programs, projectsand sub-projects are organized.

The Project Management Institute

The largest professional organization

Publishes and regularly updates A Guide to theProject Management Body of Knowledge

(PMBOK Guide) Established a professional certification - Project

Management Professional (PMP)

Established a second certificationCertified

Associate in Project Management (CAPM)


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Project Management Body of

Knowledge (PMBOK)

Consists of a project life cycle, five process

groups, and nine knowledge areas

Project management process group a logical groupingof the project management processes described in thePMBOK Guide. Collectively, these five process groups

are required for any project, have clear dependencies, andmust be performed in the same sequence on each project,

independent of the application area or the specifics of theapplied project life cycle. PMBOK Guide

PMBOK Process Groups

Initiatingdefines and authorizes a project or a projectphasePlanningdefines and refines objectives and plans

actions to achieve objectives

Executingdirects and manages people and otherresources to accomplish project workMonitoring and controllingcollects data and checksprogress to determine any needed corrective actionsClosingformalized acceptance of project outcomes andending the project


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PMBOK Knowledge AreasScope managementdetermining all the work and only the work necessaryfor project completion;Time managementdefining, sequencing, estimating duration, and resourcingwork activities as well as developing and controlling the schedule;Cost managementplanning, estimating, budgeting, and controlling costs;Quality managementquality planning, assurance, and control;Human Resources managementacquiring, developing, and managing theproject team;Communications managementgenerating, collecting, disseminating,storing, and disposing of timely and appropriate project information;Risk managementrisk identification, analysis, response planning, and

monitoring and control;Procurement managementpurchasing or acquiring product and services aswell as contract management; andIntegration managementunifying and coordinating the other knowledgeareas by creating and using tools such as charters, project plans, and changecontrol.

Project Management System

Identify potential projects

Prioritize among the potential projects What value does each potential project bring to the

organization?

Are the demands of performing each projectunderstood?

Are the resources needed to perform the projectavailable?

Is there enthusiastic support both from the externalcustomers and from one or more internal champions?

Which projects will best help the organization achieveits goals?


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Successful Projects Project success is creating deliverables that include all of the agreed

upon features

Outputs please the projects customers.

Customers use the outputs effectively as they do their work (meetquality goals)

The project should be completed on schedule and on budget (meettime and cost constraints).

Completed without heroics

People who work on the project should learn new skills and/or refine

existing skills. Organizational learning should take place and be captured for futureprojects.

Reap business-level benefits such as development of new products,increased market share, increased profitability, decreased cost, etc.

Why Projects Fail

Not enough resources are available for projectcompletion.

Not enough time has been given to the project.

Project expectations are unclear. Changes in the scope are not understood or

agreed upon by all parties involved.

Stakeholders disagree regarding expectationsfor the project.

Adequate project planning is not used.


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Types of Projects

Classifying by industry

Classifying by size

Classifying by timing of determination of projectscope

Classifying by application

Classifying by Industry

Projects indifferentindustries often

have unique

requirements

PMI specificinterest groups


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Classifying by Size

Large projects often require more

detailed planning and control

Classifying by Timing ofDetermination of Project Scope

How early in the project the project manager andteam are likely to be able to determine what the

project scope will be

All projects require planning and control The art of project management deals with when

to use certain techniques, how much detail touse, and how to tailor the techniques to theneeds of a specific project.


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Scalability of Project Tools All projects require

Determination of the wants and needs of thecustomer(s)

Understanding of the amount of work involved

Determination of a budget and schedule

Decisions about available workers and who will dowhich tasks

Management until the owner accepts the projectresults

Projects are scaled up or down to meet thecomplexity of the task

Portfolios

Multiple projects may be underway at the sametime

Each project in the portfolio should have a direct

impact on the organization.Portfolio a logical grouping of the project managementprocesses described in the PMBOK Guide. Collectively, thesefive process groups are required for any project, have clear

dependencies, and must be performed in the same sequence on

each project, independent of the application area or the specifics

of the applied project life cycle. PMBOK Guide


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Portfolios

Portfolios should be balanced including:

large and small projects

high-risk high-reward and low-risk projects

projects that can be completed quickly and some thatwill take substantial time to finish.

Programs

Programs may last as long as the organization lasts

Specific projects within a program are of limited duration

Project managers are concerned with the tradeoffs of cost,schedule, scope, and quality on their individual projects

The program manager is concerned with making tradeoffsbetween projects for the maximum benefit of the entireprogram.

Program a group of related projects managed in a coordinatedway to obtain benefits and control not available from managing them

individually. Programs may include elements of work outside of the

scope of discrete projects in the program. PMBOK Guide


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Programs

Programs deal with a specific group of related

projects

A portfolio deals with all of an organizations

projects.

A portfolio can include multiple programs as well

as multiple projects.

Portfolios and programs are managed at a levelabove the typical project manager

Projects and Subprojects

A large project may be composed of multiplesubprojects

Subproject a smaller portion of the overall project createdwhen a project is subdivided into more manageable components or

pieces. PMBOK Guide


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Portfolio, Program, Project, and

Subproject Relationships

Project Roles

Project Executive-Level Roles

Project Management-Level Roles

Project Associate-Level Roles


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The steering team

The top leader (CEO) and his/her direct reports

Select, prioritize, and resource projects in accordancewith the organizations strategic planning

Ensure that accurate progress is reported andnecessary adjustments are made.


The chief projects officer

Keeper, facilitator, and improver of the projectmanagement system

Responsible for project standards, methods, training,documentation

Either on the leadership team or one rung down in theorganization

Project Management Office (PMO) an organizational body orentity assigned various responsibilities related to the centralized and

coordinated management of those projects within its domain. The

responsibilities of the PMO can range from providing project

management support functions to actually being responsible for the

direct management of a project. PMBOK Guide


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Project Executive-Level Roles The sponsor

The sponsor is often a member of the leadership team

Has a strong interest in having the project succeed

Some financial control

Clout in the organization

The power of influence

Takes an active role in chartering the project and reviewingprogress reports

Takes a behind-the-scenes role in mentoring and assisting theproject manager throughout the project life.

Sponsor the person or group that provides the financial resources,in cash or in kind, for the project. PMBOK Guide


Project manager

Directly accountable for the project results, schedule,and budget

The main communicator

Responsible for the planning and execution of theproject

Works on the project from start to finish.

The project manager often must get things donethrough the power of influence since his or her formalpower may be limited.

Project manager the person assigned by the performingorganization to achieve the project objectives. PMBOK Guide


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Functional manager

The department headsthe ongoing managers of theorganization

Determine how the work of the project is to beaccomplished

Supervise that work

Negotiate with the project manager regarding which

workers are assigned to the project


Facilitator

Helps the project manager with the process ofrunning meetings and making decisions

Frees the project manager to concentrate on thecontent of the project

The facilitator concentrates on the process.

A facilitator helps the PM understand organizationalpolitics and provides suggestions on how to handlesituations.


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Senior customer representative

Ensures that the needs and wants of the variousconstituents in the customers organization areidentified and prioritized

Ensures that project progress and decisionscontinually support the customers desires.


Core team member

People assigned to a project from start to finish

The core team does most of the planning and makesmost of the project level decisions.

A small core team is ideal since people will then beless likely to fight for turf.

Projects often require help from other people duringbusy times.


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Subject matter experts

Temporary members that are brought on board duringbusy times

Used on an as-needed basis.

Not present during the charter development andsigning

May have neither dedication to nor detailed

knowledge of the project.

Overview of the Book

Project management is both integrative anditerative

This book has three major parts

Organizing and Initiating Projects Planning Projects

Performing Projects


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Part I - Organizing and Initiating

Projects

Project management basics and organization

Project selection and prioritization Chapter 2

Organizational structure, organizational culture,project life cycle, and project management role Chapter 3

Getting a project initiate

Chartering projects Chapter 4

Project charter a document issued by the project initiator orsponsor that formally authorizes the existence of a project, and

provides the project manager with the authority to apply

organizational resources to project activities. PMBOK Guide

Part II Planning Projects

Identify project stakeholders, their wants andneeds, and how to prioritize decisions among

them Chapter 5

How to determine the project scope and outlineit in the work breakdown structure (WBS) Chapter 6

Work breakdown structure (WBS) a deliverable-orientedhierarchical decomposition of the work to be executed by the project

team to accomplish the project objectives and create the required

deliverables. It organizes and defines the total scope of the project.

Each descending layer represents an increasingly detailed definition

of the project work. PMBOK Guide


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Part II Planning Projects

Scheduling projects Chapter 7

Scheduling resources on projects Chapter 8

Project budgeting Chapter 9

Risk planning Chapter 10

Project Quality Chapter 11

Project schedule the planned dates for performing scheduleactivities and the planned dates for meeting schedule milestones.

PMBOK Guide

Budget the approved estimate for the project or any workbreakdown structure component or any schedule activity.

PMBOK Guide

Part III Performing Projects

Project supply chain management Chapter 12

Performing projects Chapter 13

Monitoring and controlling project work Chapter 14

Controlling the human side and finishing projects Chapter 15

Monitor and control project work the process of monitoringand controlling the processes required to initiate, plan, execute,

and close a project to meet the performance objectives..

PMBOK Guide

Close project the process of finalizing all activities acrossall of the project process groups to formally close a project or

phase. PMBOK Guide


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Summary A project is an organized set of work efforts undertaken

to produce a unique output subject to limitations of timeand resources such as money and people

Project management includes work processes thatinitiate, plan, execute, control, and close project work.

Tradeoffs must be made between the scope, quality,cost, and schedule

All projects, regardless of size, complexity, or

application, need to be planned and managed. PMI is a very large professional organization devoted

to promoting and standardizing project managementunderstanding and methods

Summary

A Guide to the Project Management Body of Knowledge(PMBOK Guide), is composed of five process groups:initiating, planning, executing, monitoring and controlling,and closing along with nine knowledge areas: cost, time,scope, quality, risk, communications, Human Resources,

procurement, and integration. Successful projects require an understanding of whatproject success is and what drives it

Successful projects require an understanding of projectfailure and its major causes.

Project management requires an understanding of thevarious executive, managerial, and associate roles inproject management

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