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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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Project Life Cycle Stages
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
Project Life Cycle Stages
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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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Project Executive-Level Roles
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.
Project Executive-Level Roles
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 Management-Level Roles
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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Project Management-Level Roles
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
Project Management-Level Roles
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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Project Management-Level Roles
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.
Project Associate-Level Roles
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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Project Associate-Level Roles
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