IntroductionMuch of project management developed by the militaryNavys Polaris programNASAs space programStrategic defense initiativeProject management has found wide acceptance in industryIt has many applications outside of constructionManaging legal casesManaging new product releases

Introduction ContinuedMain forces in driving the acceptance of project and other forms of management:The exponential growth of human knowledgeThe growing demand for a broad range of complex goods and servicesIncreased worldwide competitionAll of these contribute to the need for organizations to do more and to do it fasterProject management is one way to do more faster

Projects Tend to be LargeProjects tend to be largeThe Channel Tunnel, or ChunnelDenver International AirportPanama Canal expansion projectThree Gorges Dam, ChinaProjects are getting larger over timeFlying: balloons planes jets rockets reusable rocketsThe more we can do, the more we try to do

Project Management Also Getting SmallerMore people are seeing the advantages of project management techniquesThe tools are become cheaperThe techniques are becoming more widely taught and written about

Main Goals of Project ManagementTimeCostPerformance

Time, cost, and performance are all related on a project

Direct Project Goals: Performance, Cost, TimeFigure 1-1

Project Management Institute (PMI)The Project Management Institute is the major project management organizationFounded in 1969Grew from 7,500 members in 1990 to over 260,000 in 2007The Project Management Journal and PM Network are the leading project management journals

Project ManagerProject manager is the key individual on a projectProject manager is like a mini-CEOWhile project manager always has responsibility, may not have necessary authority

Trends in Project ManagementAchieving strategic goalsAchieving routine goalsImproving project effectivenessVirtual projectsQuasi-projects

Recent Changes in Managing OrganizationsConsensual managementSystems approachProjects as preferred way to accomplish goals

The Definition of a ProjectModern project management began with the Manhattan ProjectIn the early days, project management was used mainly for very complex projectsAs the tools became better understood, they began to trickle down to smaller projectsIt has also moved out of just manufacturing to services

Major Characteristics of a ProjectImportancePerformanceLife cycle with a finite due dateInterdependenciesUniquenessResourcesConflict

Why Project Management?The main purpose for initiating a project is to accomplish some goalProject management increases the likelihood of accomplishing that goalProject management gives us someone (the project manager) to spearhead the project and to hold accountable for its completion

Negative Side to Project ManagementGreater organizational complexityHigher probability organizational policy will be violatedSays managers cannot accomplish the desired outcomeConflict

The Project Life CycleFigure 1-3

Time Distribution of Project EffortFigure 1-4

Another Possible Project Life CycleFigure 1-5

Risk During at the Start of the Life CycleFigure 1-6

Risk During the Life CycleFigure 1-7

The Structure of this TextFollows the project life cycleSome topics stand-aloneOther topics incorporated throughout

Part I: Project InitiationProjects in Contemporary OrganizationsStrategic Management and Project SelectionThe Project ManagerNegotiation and the Management of ConflictThe Project in the Organizational Structure

Part II: Project PlanningProject Activity PlanningBudgeting and Cost EstimationSchedulingResource Allocation

Part III: Project ExecutionMonitoring and Information SystemsProject ControlProject AuditingProject Termination