chapter 1 project management concepts. 3 learning objectives definition of a project and its...

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Chapter 1 Project Management Concepts

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  • Chapter 1Project Management Concepts

  • 3Learning ObjectivesDefinition of a project and its attributesKey constraints within which a project must be managedHow a project is bornLife of a projectSteps involved in the PM processImplications of global project managementBenefits of project management

  • 4Real World ExampleVignette: Irish Agency Cancels Two SAP AG ERP Projects Oct 05: Irish Health Svc Executive halted two system rolloutsPersonnel Payroll project: Launched in 95; budget of $10.7m; 3 year scheduleBy 2005, cost up to $180m; then cancelledFinancial Information Systems projectSpent $36m; expected to cost a total of $203mConsulting firm in New York was the contractor hired to implement both projectsLots of wasted time, money and effortProper project management can help prevent these failures

  • 5Real World ExampleVignette: Maines Medical Mistake Jan 05, new Medicare claims system was introducedDesigned to process $1.5b in annual claims; cost $25mImmediately had problems with rejected claimsBy end of March, 300,000 claims had been suspendedBy the end of summer, up to nearly 650,000Patients being turned away; businesses suffering greatlySince implementation, system cost $30m; now claim most of bugs are fixedProblems: Vendor had no Medicaid system experience; used unproven technology; no backup; lack of testing & trainingPoor PM and communication: It was clear that we were missing any sort of basic management of this project

  • 6Project, DefinedA project is: an endeavor to accomplish a specific objectivethrough a unique set of interrelated tasks and the effective utilization of resources.

  • 7Attributes of a ProjectHas a well-defined objectiveComposed of a series of interdependent tasks Utilizes various resourcesHas a specific time frameMay be a unique or one-time endeavorHas a customerInvolves a degree of uncertainty

  • 8Examples of ProjectsPlanning a weddingDesigning and implementing a computer systemHosting a holiday partyDesigning and producing a brochureExecuting an environmental clean-up of a contaminated siteHolding a high school reunionPerforming a series of surgeries on an accident victim

  • 9ConstraintsScopeCostScheduleCustomer satisfaction

  • 10Unforeseen CircumstancesUnforeseen circumstances may jeopardize achievement of the project objective.The challenge facing the project manager is to prevent, anticipate, and/or overcome such circumstances.

  • 11The Project Life CycleProjects are born when a need is identified by the customer.Project life cycles vary in length, from a few weeks to several years.Not all projects formally go through all four phases of the project life cycle.

  • 12Project Life Cycle: Phase 1The first phase involves the identification of a need, problem, or opportunity.The need and requirements are usually written by the customer into a document called a request for proposal (RFP).

  • The second phase is the development of a proposed solution to the need or problem.This phase results in the submission of a proposal.The customer and the winning contractor negotiate and sign a contract (agreement). 13Project Life Cycle: Phase 2

  • 14Project Life Cycle: Phase 3 The third phase is performing the project.Different types of resources are utilizedResults in the accomplishment of the project objectiveIncludes:Detailed planningImplementation of the plan

  • 15

    Project Life Cycle: Phase 4The final phase is terminating the project.Perform close-out activitiesEvaluate performanceInvite customer feedback

  • 17The Project Management ProcessThe project management process means planning the work and then working the plan.

  • 18The Project Management Process (Cont.)Clearly define the project objective. Divide and subdivide the project.Define the specific activities that need to be performed.Graphically portray the activities in a network diagram.

  • 19The Project Management Process (Cont.)Make a time estimate.Make a cost estimate.Calculate a project schedule and budget.RESULT: BASELINE PLAN

  • 20Controlling ProjectsEstablish a baseline plan.Monitor progress.Measure actual progress and compare it to planned progress.Take corrective action if the project is behind schedule, overrunning the budget, or not meeting technical specifications.

  • Global Project ManagementGlobalization adds unique challengesCultural & language differencesEconomic considerationsPolitical considerationsWorkforce availabilityTechnology & Internet help globalization and provide new opportunitiesCultural awareness and sensitivity are vital

  • 21Benefits of Project ManagementSatisfied customersAdditional businessExpansion of career opportunities Satisfaction of being on a winning team Improved knowledge and skillsWhen projects are successful, everybody WINS

  • Dice.comMonster.com22

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