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1 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 1-1

2 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Projects and Project Management 1-2 Proposed in Project Charter Specified in Project Scope Designed Programmed Installed at user site What the user wanted!

3 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  This book uses the Project Management Body of Knowledge (PMBOK) ® Guide as a foundation to provide a detailed view of project management.  Chapter 2 covers major IT software processes including SEI/CMM, SDLC, iterative approach, spiral model, rational unified process, scrum model, and the extreme programming model as well as continuous improvement management of projects and Six Sigma are included.  Chapter 3 covers tools for project management such as a thought process map, brainstorming, quality functional deployment, the Kano model, affinity diagrams, fishbone diagrams, check sheets, Pareto charts, Nominal Grouping Technique, Delphi technique, SWOT analysis, and burndown charts The Project Management Course… 1-3

4 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Chapter 4 covers project initiation methods including project selection priorities, the project charter, how to select a project manager and project team, how to identify stakeholders and conduct stakeholder analysis, requirements for a project, and project scope as well as how companies align their project strategy with their corporate strategy with examples.  Decision-making methods for procurement are provided in Chapter 5 with various types of contracts and an explanation of how detailed plans are essential for project success.  Chapter 6 covers risk identification, planning, monitoring, and control and includes techniques such as Project Failure Mode and Effects Analysis (PFMEA) and decision trees. The Project Management Course… 1-4

5 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Quality is an important part of a project, and Chapter 7 deals with quality and performance in projects. A project manager can pick and choose from several metrics that are provided in this chapter and in Appendix D.  Project crashing and critical chain project management (CCPM) are discussed in detail with examples using Microsoft Project. Resource leveling is explained in detail using Microsoft Project in Chapter 8.  Project costs and cost analysis are explained in detail in Chapter 9. Metrics for scope, cost, schedule, resource, performance, and project value are provided in Chapters 7 and 9 as well as in Appendix D. The Project Management Course… 1-5

6 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Implementation of a project audit process, project closure methods, implementation of a post-implementation process, and several techniques that are available for post- implementation of projects are discussed in Chapter 10.  For a project manager, how to develop important people skills including communication skills, conflict resolution skills, communication management, relationship building skills, and negotiation skills is explained in detail in Chapters 11 and 12.  Various project success variables for customers, organizations, project managers, and project teams are discussed in Chapter 12. Use of knowledge management and learning curves are provided. The Project Management Course… 1-6

7 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Overview of Book 1-7

8 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Understand what a project is, provide examples of projects, and understand different types of projects pertaining to various industries.  Classify projects based on technology uncertainty and system scope.  Identify project life span in various industries and explain the basic six phases of a project.  Describe project management and its benefits. Learning objectives 1-8

9 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Identify factors for project success and project management success and understand how these factors affect either the success or failure of projects as well how each one of these factors impact the other five factors in project success.  Identify project management components and understand how these components can be used to realize project success. Learning objectives 1-9

10 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 1-10

11 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  A project: Is a unique activity. Has a beginning. Has an end – a definite end. Has constraints and requirements.  Scope, Cost, Schedule, Resources, Performance, Value Has to add value. Projects Chores for the day… 1.Clean room 2.Do Homework 3.Make a sandwich - everything is in the fridge 4. Complete Journal entry Chore Project 1-11

12 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Computer related hardware and software projects Include networking, infrastructure, and software design and development projects Computer hardware related projects include computer assembling projects, erasable programmable read only memory (EPROM) projects, video related projects, web services projects, mobile commerce projects, data center projects. Computer software projects include system software projects, programming software projects, and application software projects. Types of Projects 1-12

13 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Healthcare Projects will typically be varied in their nature, according to the needs of the client and the hospital. Projects focus on improving patient care and service delivery while increasing innovation and efficiency. Stakeholders may include:  Doctors, Pharmaceutical and Insurance companies.  Payers: Individuals, businesses, government organizations.  Fiscal intermediaries: MOs, and Pharmacy.  Hospitals, delivery networks, and individual clinics.  Groups who aggregate healthcare products and services. Types of Projects 1-13

14 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  New Product Development Firms use new product development process as the first stage in generating and commercializing new products to maintain or grow their market share. The project manager’s task is to coordinate deployment of a product or new releases, coordinate testing of such new products and releases, and coordinate pilots with potential product users. Priority of development objectives, planned timing, sequence of development activities, major project milestones and prototypes are mechanisms for coordination among team members. Types of Projects 1-14

15 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Construction  Small (home) to Large (Airports)  Construction projects are often time-consuming.  Require several phases and may involve: financial organizations government agencies engineers and architects insurance companies attorneys contractors, material suppliers, and builders. Types of Projects 1-15

16 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Three underlying dimensions that encompass almost all aspects of technology are complexity, interdependence, and uncertainty.  Complexity refers to the number of products or operations that are performed at the same time and the resulting degree of difficulty.  Interdependence refers to the extent to which the items or elements upon which work is performed or the work processes themselves are interrelated.  Uncertainty refers to the variability in the process of transformation of inputs to outputs or in the inputs themselves. Classification of Projects 1-16

17 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Classification of Projects Dimension of Projects Based on Technology Uncertainty Project TypeABCD ClassificationMatureImprovementIntegrationNew Development DescriptionUsing existing and well tested technologies Adapting existing well tested technologies with slight improvements Integrating existing mature technologies New technologies ExamplesNew websiteA new website with database integration and new features SAP implementation, New hardware, Military systems Space projects 1-17

18 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Classification of Projects Dimension of Projects Based on Complexity Complexity Level123 ClassificationLowMediumHigh DescriptionAssembling components and modules in order to perform a single function Develop subsystems in order to perform a wide range of functions or activities Build large systems that function as a single entity in order to achieve a common purpose ExamplesDVDs, CDs, Refrigerators Computers, iPads, Smart phones, radar, aircraft, ships Cloud services, a city, public transportation system 1-18

19 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Classification of Projects Type A projects rely on mature technologies for all industries to have equal access. Hence, there is no competitive advantage. Type B projects rely on mature technologies with new modifications and new features. The goal is competitive advantage. Type C projects use new technologies leading to new products thus providing competitive advantage. Type D projects require development of new technologies, providing great competitive advantage Scope 1 classification deals with no subsystems and is primarily focused on a single function. A DVD player when developed in 1996 was a high-tech (Type C) assembly (Scope 1) project according to this classification. The first F-117A Nighthawk stealth fighter was delivered in 1982, the project was a super high-tech (Type D) system (Scope 2) project according to this classification. Transit authority subway systems are examples of such array projects or programs that categorize Scope 3.

20 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Project life span is a progression through a series of differing stages of development of a project. It is the total phases through which a project passes from the time it is initially conceived until the time it is either in use as a success or abandoned as a failure. Phase 1 – Conceptualization or Pre-Feasibility Phase 2 – Planning or Feasibility or Demonstration Phase 3 – Design/Development Phase 4 – Implementation/Execution/Testing Phase 5 – Launch or Termination or Closure Phase 6 – Post Implementation Review Project Life Span 1-20

21 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Phase 1: Conceptualization or Pre-Feasibility Conceptualization: A conceptualization is an idea or thought that refers to the reflection of a targeted business function or process and how the various facets of the process or function relate to each other.  A thought process is a series of ideas, thoughts, or decisions.  How and when does this conceptualization process originate? Pre-feasibility study: A pre-feasibility study is a preliminary study to assess whether to conduct a full feasibility study or not. Project Life Span 1-21

22 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Phase 2: Planning or Feasibility or Demonstration Before the start of any major project, a complete, realistic, and accurate project plan is very important. Project planning is the process of setting goals, developing strategies to support an organization’s strategic goals, and outlining tasks and schedules to accomplish project goals.  Planning a project assumes that the project under consideration has been approved for implementation.  The approval can result from Phase 1 conceptualization or pre- feasibility findings. A feasibility study is a detailed study in a controlled process to identify potential problems and opportunities. Project Life Span 1-22

23 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Phase 3: Design/Development or Development or Engineering/Manufacturing Development Once Phase 2 is completed, Phase 3 is initiated, and takes a project from planning through construction or realization of project scope. Design and development follows customer requirements and assesses for quality against predefined criteria. While analysis is discovering what the requirements are, design is evaluating a number of choices and choosing the best solution. Project Life Span 1-23

24 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Phase 4: Implementation or Execution and Testing or Production and Deployment This is the phase where products, services, and systems are realized. After the design of a product and its components, the method of manufacturing or production is defined in this phase. This phase usually consists of both implementation and testing of the implemented product or system. Drawings, specifications, and contract documents that were prepared in the design phase will be implemented, software will be coded, contracts will be tendered and awarded, and construction work will be undertaken. Project Life Span 1-24

25 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Project closure: Business stakeholders agree to release the product and launch the product for the user or consumer.  Phase 5: Launch or Termination or Closure A project is brought to its proper completion in this phase. This is where the business stakeholders agree to release the product and launch the product for the user or consumer. The client’s formal acceptance is essential in this phase. Often, lessons learned from previous project completions and installations are used in this phase. Launch of a product or system usually combines contributions from multiple disciplines in an organization. Project Life Span 1-25

26 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Phase 6: Post-Implementation Review Progress and success are measured, project documents are archived, lessons learned are captured, and project activities are formally closed. The post-implementation phase allows an organization to step back and review processes and results. The organization will consider processes that need adjustment, highlight the most effective processes, and provide action items to improve future projects. Post-occupancy evaluations are also used to assess the effectiveness of construction or production or implementation. Project Life Span 1-26

27 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Project Life Span 1-27

28 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Management is defined as the act of getting people together to accomplish desired goals and objectives.  Management is composed of planning, organizing, and controlling an organization or a group of people and other needed resources to accomplish a goal.  Projects consist of many activities, and those activities are brought together to make up a project including: Project management; and Engineering and services of projects.  Project management is the act of collaborating people and other required resources such that the project is planned, organized, and controlled effectively to accomplish project goals and objectives. Project Management 1-28

29 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Ensure the scope of a project as required by a customer is completely met  Provides a process that can be followed to successful completion of projects  Success from project management will inspire individuals and organizations to perform efficiently in the future  Helps individuals and organizations to map a clear strategy to complete a project successfully  Forces individuals and organizations to identify and assess all perceived risks and exposures so that they know the problems before they surface Project Management Benefits 1-29

30 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Helps individuals and organizations to know when goals and objectives cannot be achieved  Makes individuals and organizations understand and work towards their customers’ requirements thus increasing quality of the output  Creates a structure and process which enables a project to be kept under control  Motivates individuals and organizations to ensure a quality output  Helps to deliver projects successfully  Helps to measure goals and objectives  Helps individuals and organizations to save time and money Project Management Benefits 1-30

31 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Relations with the client  Contracts and legal agreements  Politics and conflicts  Decreased Profitability  Unrealistic goals  Poor Communications  Competitive disadvantage  Client dissatisfaction  Perceived value of the project Project Failure Factors 1-31

32 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Inadequate rationale, objectives, tasks, and goals  Wrong project manager  Unsupportive top management  Lack or misuse of project management techniques  Inadequate project planning  Lack of commitment to the project Project Management Failure Factors 1-32

33 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Factors and constraints affect either the success or the failure of projects: Completion of project within scope or customer requirements Completion of project within allocated budget Completion of project within allocated schedule or period of time Completion of project using allocated resources Completion of project within established performance and technology standards Completion of project to maximize project value for stakeholders Project Management Failure Factors 1-33

34 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Factors and Constraints 1-34

35 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  The scope of a project is the work that needs to be accomplished to deliver the results of the project with specified features and functions.  Scope is based on the customer and organizational requirements of a project, and the scope constraint refers to what must be done to produce the project's end result.  The scope of a product is the general work that needs to be accomplished to deliver a product, a system, a structure, or a service with the specified features and functions.  The product scope consists of the features and functions that characterize a product, a service, a system, or a structure. Project Scope and Product Scope 1-35

36 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Project schedule: The list of all activities of a project with intended start and end dates linked by dependencies and constrains of a project  Project cost: The sum of all costs to complete a project  Project resources: An available supply of assets, capabilities, processes, attributes, and knowledge in an organization  Project performance: The overall quality of a project in terms of its impacts and benefits  Project value: The overall worth of a project Other factors of success 1-36

37 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Six Factors of Project Success Impact of six factors on project success FactorsImpacts ScopeIncrease in scope can lead to increased time, increased cost, better or worse performance, increase in resources, and increase or decrease in value TimeTight time constraint can lead to increased cost, reduced scope, reduced performance, increase in resources, and reduced value CostTight budget constraint can lead to increased time, reduced scope, reduced performance, increase or decrease in resources, and reduced value 1-37

38 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Six Factors of Project Success Impact of six factors on project success FactorsImpacts ResourcesUnskilled, less, faulty, bad quality resources lead to increased time, reduced performance, reduced value, higher costs, and short of scope PerformanceStringent performance measures can lead to increased time, increased scope, increased cost, increase or decrease in resources, and increase or decrease in value ValueExpected value measures can lead to increased scope, increased time, increased cost, demand for better resources, and better or worse performance 1-38

39 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  A clear definition of the project, including good rationale and alignment to corporate goals  Developing a project organizational structure with associated channels of communication, accountabilities, responsibilities, and reporting facilities  Defining project requirements from customers and establishing a project scope for success  Planning the project to include analysis of activities, and defining and developing major tasks with milestones  Planning clear and adequate communications  Evaluating risks at all stages of a project and planning to mitigate these risks PM components 1-39

40 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Estimating time, costs, resource requirements and performance measures, and project value  Scheduling all activities  Continuously monitoring and controlling scope, time, cost, performance factors, and project value  Implementing the project  Bringing closure to a successful project  Creating and benefiting from project value PM components 1-40

41 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Project Management Components 1-41

42 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  A project is a unique activity that adds value, has beginning and end dates, and has constraints that include scope, cost, schedule, resource, performance, and value (customer satisfaction).  Using technological uncertainty and technological complexity as two dimensions, we can classify projects.  In general, there are six distinct phases of a project in a project life span  Organizations that work on various projects need to acquire good project management skills and techniques. Summary 1-42

43 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Project management is the act of collaborating people and other required resources such that the project is planned, organized, and controlled effectively to accomplish project goals and objectives.  Project success depends upon project management success. Project success is due to a good understanding and a good control of constraints. Summary 1-43

44 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Success and failure of projects depend upon completion of the project: Within scope or customer requirements Within allocated budget Within allocated schedule or period of time With allocated resources With established performance standards and maximizing technology use With maximized project value for stakeholders Summary 1-44

45 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 1.Anyone can become a project manager in a company. 2.A very complex and very unique task can be made into a number of smaller manageable tasks. 3.Does power and authority contribute to project success? 4.Is project management important in firms? Why? Why not? 5.Can all benefits of project management be realized? How? Why? Why not? Class Discussions 1-45

46 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Project Management developed from several fields of application including construction, engineering, and defense activity  Two forefathers of project management are: Henry Gantt, called the father of planning and control techniques (Gantt chart), and Henri Fayol for his creation of management functions which form the foundation of the body of knowledge associated with project and program management. Project Evolvement and history – Additional Materials Source: 1-46

47 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Frederick Winslow Taylor's theories of scientific management. His work is the forerunner to modern project management tools including work breakdown structure (WBS) and resource allocation.  1950s: Beginning of the modern Project Management era  Prior to the 1950s, projects were managed on an ad hoc basis using mostly Gantt Charts, and informal techniques and tools.  The "Critical Path Method" (CPM) was developed as a joint venture between DuPont Corporation and Remington Rand Corporation for managing plant maintenance projects. Project Evolvement and history – Additional Materials Source: 1-47

48 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  "Program Evaluation and Review Technique" or PERT, was developed by Booz-Allen & Hamilton as part of the United States Navy's (in conjunction with the Lockheed Corporation) Polaris missile submarine program.  In 1956, the American Association of Cost Engineers (now AACE International; the Association for the Advancement of Cost Engineering) was formed by early practitioners of project management and the associated specialties of planning and scheduling, cost estimating, and cost/schedule control (project control). AACE continued its pioneering work and in 2006 released the first integrated process for portfolio, program and project management (Total Cost Management Framework). Project Evolvement and history – Additional Materials Source: 1-48

49 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  The International Project Management Association (IPMA) was founded in Europe in 1967 as a federation of several national project management associations. IPMA maintains its federal structure today and now includes member associations on every continent except Antarctica. IPMA offers a Four Level Certification program based on the IPMA Competence Baseline (ICB).The ICB covers technical competences, contextual competences, and behavioral competences.  In 1969, the Project Management Institute (PMI) was formed in the USA. Project Evolvement and history – Additional Materials Source: 1-49

50 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  The American Academy of Project Management (AAPM) International Board of Standards 1996 was the first to institute post-graduate certifications such as the MPM Master Project Manager, PME Project Management E-Business, CEC Certified- Ecommerce Consultant, and CIPM Certified International project Manager. The AAPM also issues the post-graduate standards body of knowledge for executives. Project Evolvement and history – Additional Materials Source: 1-50

51 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 1-51


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