1. Project Management A Managerial Approach
Chapter 1
Projects in Contemporary Organizations

2. Projects in Contemporary Organizations
Project Management has emerged because the characteristics of our turn-of-the-century society demands the development of new methods of management
Many forces have fostered the emergence and expansion of Project Management

3. Forces Of Project Management
3 Paramount Forces driving Project Management:
1. The exponential expansion of human knowledge
2. The growing demand for a broad range of complex,
sophisticated, customized goods and services
3. The evolution of worldwide competitive markets for the
production and consumption of goods and services
All 3 forces combine to mandate the use of teams to solve problems that used to be solvable by individuals

4. Objectives of a Project
3 Project Objectives:
Performance
Time
Cost
Expectations of clients are not an additional target, but an inherent part of the project specifications

5. Objectives of a Project
3 Project Objectives:

6. The Professionalism of Project Management
Complexity of problems facing the project manager
Growth in number of project oriented organizations
The Project Management Institute (PMI) was established in 1969
By 1990 it had 7,500 members
5 years later, over 17,000 members
And by 1998, it had exploded to over 44,000 members
This exponential growth is indicative of the rapid growth in the use of projects
Also reflects the importance of PMI as a force in the development of project management as a profession

7. Project Management Institute

8. Recent Changes in Managing Organizations
The process of managing organizations has been impacted by three revolutionary changes
1. Accelerating replacement of traditional, hierarchical management by participatory management
2. Currently witnessing the adoption of the “systems approach” (sometimes called “systems engineering”)
3. Organizations establishing projects as the preferred way to accomplish the many specific changes that must be made when the organization attempts to alter its strategy

9. The Definition of a “Project”
Must make a distinction between terms:
Program - an exceptionally large, long-range objective that is broken down into a set of projects
Task - set of activities comprising a project
Work Packages - division of tasks
Work Units - division of work packages
In the broadest sense, a project is a specific, finite task to be accomplished

10. Characteristics of a Project
Have a purpose
Have a life cycle
Interdependencies
Uniqueness
Conflict

11. Why Project Management?
Companies have experienced:
Better control
Better customer relations
Shorter development times
Lower costs
Higher quality and reliability
Higher profit margins
Sharper orientation toward results
Better interdepartmental coordination
Higher worker morale

12. Why Project Management?
Companies have also experienced some negatives:
Greater organizational complexity
Increased likelihood of organizational policy violations
Higher costs
More management difficulties
Low personnel utilization

13. The Project Life Cycle Stages of a Conventional Project:
Slow beginning
Buildup of size
Peak
Begin a decline
Termination

14. The Project Life Cycle
Chapter 1-13

15. The Project Life Cycle
Time distribution of project effort is characterized by slow-rapid-slow

16. The Project Life Cycle
Other projects also exist which do not follow the conventional project life cycle
These projects are comprised of subunits that have little use as a stand alone unit, yet become useful when put together

17. The Project Life Cycle
Unlike the more conventional life cycle, continued inputs of effort at the end of the project produce significant gains in returns

18. The Project Life Cycle
It is essential for the Project Manager to understand the characteristics of the life cycle curve for his project
The distinction between the two life cycles plays a critical role in the development of budgets and schedules for the project

19. The Project Life Cycle Risk during project life cycle
With most projects there is some uncertainty about the ability to meet project goals
Uncertainty of outcome is greatest at the start of a project
Uncertainty decreases as the project moves toward completion

20. Risk During Project Life Cycle
Uncertainty decreases as the project moves toward completion

21. Textbook Structure
Structure of the text follows the life cycle of projects
Text divided into 3 main sections:
Part I - Project Initiation
Part II - Project Implementation
Part III - Project Termination

22. Summary
The Project Management Institute (PMI) was founded in 1969 to foster the growth and professionalism of project management
Project management is now being recognized as a valuable “career path” in many organizations, as well as a way to gain valuable experience within the organization

23. Summary The three primary forces behind project management are:
1. The growing demand for complex, customized goods and services
2. The exponential expansion of human knowledge
3. The global production-consumption environment

24. Summary The three prime objectives of project management are:
1. To meet specified performance
2. To do it within specified costs
3. Complete on schedule
Terminology follows in this order: program, project, task, work package, work unit

25. Summary
Projects are characterized by a singleness of purpose, a definite life cycle, complex interdependencies, some or all unique elements, and an environment of conflict
Project management, though not problem-free, is the best way to accomplish certain goals

26. Summary
Projects often start slow, build up speed while using considerable resources, and then slow down as completion nears
This text is organized along the project life cycle concept:
Project Initiation (Chapters 2-6)
Project Implementation (Chapters 7-11)
Project Termination (Chapters 12-13)

27. Projects in Contemporary Organizations
Questions?

28. Projects in Contemporary Organizations
Picture Files

29. Projects in Contemporary Organizations
Figure 1-1

30. Projects in Contemporary Organizations
Figure 1-2

31. Projects in Contemporary Organizations
Figure 1-3

32. Projects in Contemporary Organizations
Figure 1-4

33. Projects in Contemporary Organizations
Figure 1-5

34. Projects in Contemporary Organizations
Figure 1-6