1. Project Management in Practice Fourth Edition Prepared by Scott M. Shafer, Updated by William E. Matthews and Thomas G. Roberts, William Paterson University Copyright 2011 John Wiley & Sons, Inc. 1-1 Mantel, Meredith, Shafer, and Sutton John Wiley and Sons, Inc.

2. Why the Emphasis on Project Management? Copyright 2011 John Wiley & Sons, Inc. 1-2  Many tasks do not fit neatly into business-as-usual  Organizations need to assign responsibility and authority for the achievement of their goals

3. Characteristics of Projects Copyright 2011 John Wiley & Sons, Inc. 1-3  Unique  Specific deliverables  Specific due date

4. Other Common Characteristics of Projects Copyright 2011 John Wiley & Sons, Inc. 1-4  Multidisciplinary  Complex  Often involve conflicts  Part of programs

5. Trends in Project Management Copyright 2011 John Wiley & Sons, Inc. 1-5  Project management techniques are increasingly used for: Achieving strategic, routine, and business goals Improving project effectiveness Organizing virtual projects Handling quasi-projects

6. Definition of a Project Copyright 2011 John Wiley & Sons, Inc. 1-6 “A project is a temporary endeavor undertaken to create a unique product or service.” Project Management Institute, 2007

7. Definition of Project Management Copyright 2011 John Wiley & Sons, Inc. 1-7 “The application of knowledge, skills, tools, and techniques to a broad range of activities in order to meet the requirements of a particular project.” Project Management Institute 2007

8. Scope, Cost, and Time Project Performance Targets Copyright 2011 John Wiley & Sons, Inc. 1-8

9. Abilities Needed For Effective Project Management Copyright 2011 John Wiley & Sons, Inc. 1-9  Ability to resolve conflicts  Creativity and flexibility  Ability to adjust to change  Good planning skills  Negotiation skills win-win versus w in-lose

10. The Life Cycle of Projects Copyright 2011 John Wiley & Sons, Inc. 1-10  All organisms have a life cycle (i.e., they are born, grow, wane, and die) … and so do projects  Some projects follow an S-shaped curve … they start slowly, develop momentum, and then finish slowly  Other project follow a J-shaped curve … they start slowly, proceed slowly, and then finish rapidly

11. Nonnumeric Selection Methods Copyright 2011 John Wiley & Sons, Inc. 1-11  The “Sacred Cow”- a pet project advocated by a senior executive of the firm.  The operating/competitive necessity  Comparative benefits

12. The Q-Sort Method Copyright 2011 John Wiley & Sons, Inc. 1-12

13. Numeric Selection Methods Copyright 2011 John Wiley & Sons, Inc. 1-13  Financial assessment methods payback period discounted cash flow future opportunity analysis  Scoring methods unweighted 0-1 factor method weighted factor scoring method

14. Payback Period Copyright 2011 John Wiley & Sons, Inc. 1-14

15. Discounted Cash Flow Copyright 2011 John Wiley & Sons, Inc. 1-15 where I 0 = the initial investment F t = the net cash flow in period t k = the required rate of return or hurdle rate

16. The Weighted Scoring Model Copyright 2011 John Wiley & Sons, Inc. 1-16 where S i = the total score of the i th project s ij = the score of the i th project on the j th criterion w j = the weight or importance of the j th criterion

17. Uncertainties Encountered in Project Management. Copyright 2011 John Wiley & Sons, Inc. 1-17  Time required to complete a project  Availability and cost of key resources  Timing of solutions to technological problems  Macroeconomic variables  The whims of clients  Actions taken by competitors

18. Can Uncertainty be Eliminated? Copyright 2011 John Wiley & Sons, Inc. 1-18  No … uncertainty cannot be eliminated. However, if managed properly, it can be minimized

19. Risk Analysis Copyright 2011 John Wiley & Sons, Inc. 1-19  Estimate probabilities or distributions associated with key parameters  Construct a mathematical model of the situation and run a simulation... given various scenarios  Analyze distribution of outcomes generated by model

20. Risk Analysis with Crystal Ball Copyright 2011 John Wiley & Sons, Inc. 1-20  Assumption Cells  Distribution Gallery  Forecast Cells

21. Steps in the Project Portfolio Process Copyright 2011 John Wiley & Sons, Inc. 1-21  Establish a project council  Identify project categories and criteria  Collect project data  Assess resource availability  Reduce the project and criteria set  Prioritize the projects within categories  Select the projects to be funded and those to be held in reserve  Implement the process

22. Categories of Projects Copyright 2011 John Wiley & Sons, Inc. 1-22  Derivative projects … those that are only incrementally different from existing offerings  Platform projects … major departures from existing offerings … the next generation  Breakthrough projects … involving a newer technology … possibly a “disruptive” technology  R&D projects … “blue sky” or visionary endeavors

23. Copyright Copyright 2011 John Wiley & Sons, Inc. 1-23 Copyright  John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back- up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information herein.