Project Management Framework Chapter 1 Project Management ( BUS 445)

Introduction Project management is a discipline of organizing and managing resources in such a way that these resources deliver all the work required to complete a project within defined scope, time, and cost constraint. It is the planning, scheduling and controlling of integrated tasks such that the objectives of the project are achieved successfully and in the best interest of the stakeholders.

Introduction Project management has emerged because the characteristics of our modern society demands the development of new methods of management. Many factors have forested the emergence and expansion of the Project Management.

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

The definition of a project A Project is a temporary endeavor undertaken to create a unique product, service, or result . (Project Management Institute, 2004, p. 5). Characteristics: Temporary “has a definite beginning and end time” Unique Progressive elaboration

Characteristics of a project 1. Importance: The most crucial attribute of a project is that it must be important enough in the eyes of senior management to justify setting up a special organizational unit outside the routine structure of the organization.

2. Performance A project is usually a one-time activity with a well-defined set of desired end results. The project is complex enough that the subtasks require careful coordination and control in terms of timing, precedence, cost, and performance. Often, the project itself must be coordinated with other projects being carried out by the same parent organization

3. Life Cycle with a Finite Due Date Like organic entities, projects have life cycles. From a slow beginning they progress to a buildup of size, then peak, begin a decline, and finally must be terminated by some due date. 4. Interdependencies Projects often interact with other projects being carried out simultaneously by their parent organization. While such interproject interactions are common, projects always interact with the parent organization’s standard, ongoing operations.

5. Uniqueness Every project has some elements that are unique 5. Uniqueness Every project has some elements that are unique. No two construction or R & D projects are precisely alike. 6. Resources Projects have limited budgets, both for personnel as well as other resources. Often the budget is implied rather than detailed, particularly concerning personnel, but it is strictly limited. The attempt to obtain additional resources (or any resources) leads to the next attribute—conflict

7. Conflict The PM lives in a world characterized by conflict 7. Conflict The PM lives in a world characterized by conflict. Projects compete with functional departments for resources and personnel. The members of the project team are in almost constant conflict for the project’s resources and for leadership roles in solving project problems.

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

Objectives of a project Performance Required performance target cost Budget limit Due date Time schedule Figure: Direct project goals— performance, cost, time.

Difference between program , task ,work packages and work unit Program : an exceptionally large, long-range objective that is broken down into a set of projects Task: a set of activities comprising a project Work Packages : division of tasks Work unit : division of work packages So, a Project is a specific, finite task to be accomplished.

The professionalism of Project management Complexity of problems faced by project manager Growth in number of project oriented organizations The project Management institue (PMI) was established in 1969 By 1990 it had 7,500 members 5 years later, over 17,000 members And by 2001, it ha exploded to 86,000 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

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 their goals

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

Why Project Management Companies have also experiented some negatives: Greater organizational complexity Increased liklihood policy violations Higher costs More management difficulties Low personal utilization

What is Project Management? Project Management is: The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. A systematic process used to initiate, plan, execute, control, and close a project to meet defined objectives . A science and an art.

Relationships among Program, Program MGMT, Portfolio and Portfolio MGMT Program and Program Management Program: Defined as a group of related projects, subprograms, and program activates managed in a coordinated way to obtain benefits not available from managing them individually. Program Management: The application of knowledge, skills, tools, and techniques to a program in order to meet the program requirements and to obtain benefits and control no available by managing projects individually.

Relationships among Program, Program MGMT, Portfolio and Portfolio MGMT Portfolio and Portfolio Management: Portfolio: Project, programs, sub-portfolio, and operations managed as a group to achieve strategic objectives. They many not necessarily be interdependent or directily related. Portfolio Management: refers to the centralized management of one or more portfolio to achieve strategic objectives.

Business Value It is a concept that is unique to each organization. What is business value? It is a concept that is unique to each organization. It is defined as the entire value of the business, the total sum of all tangible and intangible elements. Successful business value realization begins with comprehensive strategic planning and management

Role of Project Manager Who is Project manager? the person assigned by the performing organization to lead the team that is responsible for achieving. The role of project manager is distinct from a functional manager or operations manager.

Role of Project Manager Functional manager: focused on providing management oversight for a functional or a business unit operations manager: responsible for ensuring that business operations are efficient. For reporting: Project manager may report to a functional manager. Project manager may be one of several project managers who report to a program or portfolio

Role of Project Manager Responsibilities and competencies of the project manager: Knowledge: Refers to what the project manager knows about project management Performing: Refers to what the project manager is able to do or accomplish while applying his or her project management knowledge Personal: Refers to how the project manager behaves when perfuming the project or related activities.