1. SBI 202 – Project Management
Prelim Portion – Ch 1 & 2
Project Management , 2nd Edition (2010)
By: Jeffery K. Pinto

2. Chapter 1 - Why Project Management?
Introduction
Chapter 1 - Why Project Management?

3. What is a PROJECT
A project is a “Unique Venture”, with a “Beginning and End”, “Conducted by People”, to meet “Established Goals”, with parameters of “Cost, Schedule, and Quality”.
Project can also be defined as:
Specific Objective to be completed with certain specification
Have defined start and end dates
Have funding limits
Consume human and non human resource (money, people, equipment's)
Are multifunctional (across various departments)

4. General Project Characteristics
Projects are complex, one time process
Projects are developed to resolve a clear goal or set of goals
Project are ad hoc endeavor's with a clear life cycle
Projects are building blocks in design and execution of organizational strategies
Projects are responsible for improving products, services and organizational process
Projects provide strategy for the management of change

5. General Project Characteristics
Project management entails cross functional and organizational boundaries
Management function like planning, organizing, motivation, directing and control applies to project management
Principal outcomes of a project are satisfaction of customer requirements within the constrains of technical, cost and schedule objective
Projects are terminated upon successful completion of performance objectives

6. Process Management & Project Management
Projects
Repeat process or products
Several objective's
Ongoing
People are homogenous
Well established system in place
Greater certainty of cost, performance & schedule
Part of line organization
Based on established practices
New process or product
One objective
One shot – limited life
People are heterogeneous
System to be created to integrate efforts
Greater uncertainty of cost, performance & schedule
Outside line of organization
Violates established practices

7. Importance of Project Shortened product life cycle
Narrow product launch windows
Increasingly complex and technical products
Emergence of global market

8. Project Life Cycle Defining Stage Planning Stage Executing Stage
Delivering Stage

9. Project Life Cycle & Man-hours spend

10. Defining Stage Also know as Conceptualization
Initial goals and technical specification for a project along with the needed resources are identified and the stake holders and the clients agree on it
Activities involved in this stage are
Goals
Specifications
Tasks
Responsibilities

11. Planning Stage
Specification are given in detail along with the specification, schematics and schedule are given and laid out
Work packages are created here, which is nothing but individual pieces of the project
Activities involved in this stage are
Schedules
Budgets
Resources
Risks
Staffing

12. Executing Stage The actual work of the project is carried out here
Maximum number of resources and man hours are required in this stage of a project
Activities involved in this stage are
Status Reports
Changes
Quality
Forecasts

13. Delivery Stage Also known as Termination
Occurs when the project is ready to be completed or has been completed and is ready for transfer to the customer
Activities involved in this stage are
Train Customer
Transfer Documents
Release Resources
Release Staff
Lessons Learned

14. Project Life Cycle & Effects

15. Factors of Project Success
Time
Cost
Performance

16. Quadruple Constraint for Project Success

17. Four Dimension of Project Success Importance

18. Four Dimension of Project Success Importance
Project Efficiency
Meeting budget and schedule expectation
Impact on Customer
Meeting technical specification, addressing customer need and creating a project that satisfies the client need
Business Success
Project has achieved significant commercial success
Future Potential
The project has opened new market or new product line o had helped to develop new technology for future use

19. Project Management Maturity – A Generic Model
High Maturity
Institutionalized, seeks continuous improvements
Moderate Maturity
Defined practices, training programs, organizational supports
Low Maturity
Ad hoc process, no common language, little support

20. The Organizational Context
Chapter 2 - Strategy, Structure, and Culture

21. Projects & Organizational Strategy
Developing VISION statement and MISSION statement
Formulating, implementing, and evaluating
Making cross functional decisions
Achieving objectives

22. Characteristics of Objectives
S Specific - Smart
M Measurable
A Attainable
R Realistic
T Time Related

23. Relationship of Strategic Elements
Mission
Objectives
Strategy
Goals
Programs

24. Stakeholder Management
Project Stakeholders
Are all the individuals or groups who have an active stake in the project and can potentially impact, either positively or negatively in the development.

25. Identify Project Stakeholder
Internal
Top Management
Accountant
Other Functional Managers
Project Team Members
External
Clients
Competitors
Suppliers
Environmental, Political, Consumers and other intervenor group

26. Managing Stakeholders
Assess the environment
Identify the goals of the principal actors
Asses company and individual capability
Define the problem
Develop the solution
Test and refine the solution

27. Organizational Structure
Organizational structure designates formal reporting relationship including the level in the organization and the span of control for the manager and supervisor
Organizational structure identifies the grouping together of individual into departments and departments into total organization
Organizational structure includes the design of system to ensure effective communication, coordination, and integration of effort across department.

28. Forms of Organizational Structure
3 types of organizational structure
Functional Organizations
Project Organizations
Matrix Organizations

29. Functional Organizational
Strength
Developed within the basic functional structure of the organization, no disruption or change to the design
Development of in-depth knowledge and intellectual capital
Standard career path and team members perform their duties while maintaining maximum connection with the group
Weakness
Makes it difficult to achieve cross-functional cooperation
Lack of customer focus
Takes longer duration to complete due to structural problem, slow communication, lack of ownership in project and for completion of activities
Projects may be sub optimized due to varying interest or commitment

30. Project Organization Strength
Assign authority solely to the project manager
Lead to improved communication across the organization and among functional group
Promotes effective and speedy decision making
Promotes the creation of cadres of project management experts
Encourages rapid response to market opportunities
Weakness
Setting and maintenance of team is expensive
Potential for project team to develop loyalty to the project rather than the overall organization
Difficult to maintain a pooled supply of intellectual capital
Concern about the project team members about the future once the project ends

31. Matrix Organization Strength Suited for dynamic environments
Emphasizes the dual importance of project management and functional efficiency
Promotes coordination across functional units
Maximizes, scare resource between competing projects and functional responsibilities
Weakness
Dual hierarchies mean two bosses
Requires significant time to be spent negotiating the sharing of critical resources between projects and departments
Can be frustrating for workers caught between competing projects and functional demands

32. Project Management Office
PMO is defined as a centralized unit within an organization or department that oversees or improves the management of projects
Weather Station
Control Tower
Resource Pool

33. Organizational Culture
Unwritten
Rules of behavior
Held by some subset of the organization
Taught to all new members

34. How are Culture Formed Technology Environment Geographical Location
Reward System
Rules and Procedures
Key Organizational Member
Critical Incidents

35. Organizational Culture and Project Management
Departmental Interaction
Employee Commitment to Goal
Project Planning
Performance Evaluation