Introduction to Project Management Chapter - One Introduction to Project Management By; Dr. Zaid Ahmad Ansari Assistant Professor – Marketing College of Business, Rabigh King Abdulaziz University

Introduction to Project Management What is a project? What is project management? Who is a project manager? Project Management Body of Knowledge

Discussion What is a project?

What is a project A project is a temporary endeavour undertaken to produce a unique product, service or result.

All projects have a beginning, a middle and an end. 1. What is a Project? All projects have a beginning, a middle and an end. Beginning Middle End Def: A temporary endeavor undertaken to accomplish a unique purpose needs Major Characteristics of a Project: Established objectives Defined life span with a beginning and end Across-organizational participation New or unique Specific time, cost, and performance requirements

Characteristics of a project A project is temporary A project is unique A project is progressively elaborated Progressive elaboration means developing in steps, and continuing by increments. A successful projects is one that meet its objectives

Characteristics of project A target outcome A defined life span Cross organisational participation New or unique Time, Cost and performance requirements Projects have a common set of characteristics

What a project isn’t What is not a project Followings are not project: Explorations التنقيب Go on indefinitely One person working alone Creating the same thing multiple times No constraints on time, cost or performance

Typically 189% over budget 1994 31% Critical Failures 53% Challenged 16% Success Not even completed Typically 189% over budget OTOBOS Source: CHAOS Report 1995 by the Standish Group Access it here: http://net.educause.edu/ir/library/pdf/NCP08083B.pdf Since 1995 several subsequent versions have been published. Project performance has improved… incrementally.. Over the subsequent decade. There is still significant improvement opportunities for the IT projects industry. What do you think is going wrong at your workplace? What can be done to improve things? The 1995 Standish (CHAOS) report found the following factors common to successful projects1. User Involvement 15.9% 2. Executive Management Support 13.9% 3. Clear Statement of Requirements 13.0% 4. Proper Planning 9.6% 5. Realistic Expectations 8.2% 6. Smaller Project Milestones 7.7% 7. Competent Staff 7.2% 8. Ownership 5.3% 9. Clear Vision & Objectives 2.9% 10. Hard-Working, Focused Staff 2.4% Other 13.9% Source: CHAOS Report 1995 by the Standish Group Access it here: http://net.educause.edu/ir/library/pdf/NCP08083B.pdf 1 2 3 4 5 6 7 8

Your Projects Cannot Afford to Fail 66% of all IT projects fail, come in over budget or run past the original deadline Every year, $55 billion is wasted on failed IT projects in the U.S. Business Impacts: Reduced profitability Inability to fund new projects Poor customer satisfaction Source: Chaos Chronicles 2003, The Standish Group

Projects vs Operations Projects are temporary and unique, Operations are ongoing and repetitive. The purpose of a project is to attain its objective and then terminate. The objective of an ongoing operation is to sustain the business. A project concludes when its specific objectives have been attained, while operations adopt a new set of objectives and the work continues.

Classification of Project Types Projects can be classified as social sector and infrastructure. Some examples are: Transportation Highways, mass transit, airports Utilities Electric power, gas, telephones Education Schools, colleges, dormitories Public Safety Police, fire, National guard Recreation Parks, playgrounds, historic sites Development Harbors, dams, irrigation, Research Health, space, agriculture Defense Military equipment and systems Conservation Forests, shorelines, pollution

How do Projects Originate? A market demand An organizational need A customer request A technological advance A legal requirement

What is Project Management? Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements

Managing Projects involves ... Identifying requirements Establishing clear and achievable objectives Balancing the competing demands for quality, scope, time, cost, resources and risk. Adapting the specifications, plans, and approach to the different concerns and expectations of the various stakeholders

Project Management Processes Initiating Planning Executing Monitoring and Controlling Closing

All projects typically go through these five processes Process Groups Initiate Plan Monitor & Control Implement Close All projects typically go through these five processes

Figure 1.1 Project Life Cycle (Gray & Larson, 2006, p6)

Who is responsible for achieving the project objectives? Project Manager

Characteristics of Good Project Managers Excellent communication skills Excellent planning skills Excellent budgeting skills Excellent conflict resolution skills Excellent leadership skills Excellent motivators Excellent management skills Excellent interpersonal skills

General Management Skills Financial management and accounting Sales and marketing Contracts and commercial law Manufacturing and distribution Strategic planning, tactical planning, and operational planning Organizational structures and staffing Health and safety practices Information technology

What About Expertise? Much of the knowledge and many of the tools and techniques for managing projects are unique to project management Effective project management requires The Project 'Management Body of Knowledge' Application area knowledge, standards, and regulations Understanding the project environment General management knowledge and skills Interpersonal skills

Knowledge Areas The knowledge areas describes the key competencies that project managers must develop PMBOK specifies nine knowledge areas The knowledge areas and the proccess groups form the core of the PMBOK

PMBOK Knowledge Areas Project Scope Management Project Time Management Involves defining and managing all the work required to successfully complete the project. Project Time Management Includes estimating how long it will take to complete the work, developing appropriate project schedules. Project Cost management Consists of preparing and managinh the budget for the project

Project Quality Management Ensures that the project will satisfy the stated or implied needs for which it was undertaken Project Human Resource Management Concerned with making effective use of the people involved with the project. Leadership and motivation is included Project Communications Management Involves generating, collecting, disseminating, and storing project information

Project Risk Management Involves identifying, analyzing, and responding to risks related to the project Project Procurement Management Involves acquiring or procuring goods and services that are needed for a project from outside the performing organization. Project Integration Management Is an overarching function that affects and is affected by all other knowledge areas

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