MGMT 483 – Week 1

Project management – a definition“Project management is the process by which projects are defined, planned, monitored, controlled and delivered such that the agreed benefits are realised. Projects are unique, transient endeavours undertaken to achieve a desired outcome. Projects bring about change and project management is recognised as the most efficient way of managing such change.” Association for Project Management

Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

The expansion of knowledge to the point where no individual can grasp the knowledge necessary to create the goods and services demanded by modern society

The continuing demand for even more complex goods and services, where the user demands perfection without having to read the users manual.

Worldwide competition among the providers of goods and services forcing the need to understand local markets.

All of these contribute to the need for organizations to do more and to do it faster

Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

Projects tend to be large The Channel Tunnel, or Chunnel Denver International Airport Panama Canal expansion project Three Gorges Dam, China

Projects are getting larger over time Flying: balloons planes jets rockets

reusable rockets

The more we can do, the more we try to do

Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

1. More people are seeing the advantages of project management techniques

2. The tools are become cheaper3. The techniques are becoming more

widely taught and written about Wedding and other event planning A new kitchen A website redesign Etc etc – some examples that come to

mind?Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

The management and balancing of 3 elements:

1. Time2. Cost3. Performance (scope)

Time, cost, and performance are all related on a project – there is always a “trade-off”Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

Figure 1-1Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

Projects are considered successful if they meet the stated objectives within cost and schedule goals.

The project manager must be mindful, however, of the set of often-unstated goals that form the fourth objective, namely: the expectations of the client.

Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

Chaos Report 2009 (The Standish Group) Shows a “marked decrease in project

success rates” 32% of all projects succeed: delivered on

time, on budget, with required features and functions

44% were challenged: late, over budget, and/or with less than the required features and functions

24% failed: cancelled prior to completion or delivered and never used

Any non-trivial project is almost certain to have problems – project management is hard

Problems with people Poor communication Lack of buy-in from key stakeholders Resistance from employees / users Tasks not completed as agreed

Problems with estimating time and budgets – overly optimistic or over-promising

Scope creepMcNurlin & Sprague. Information Systems Management in Practice. 7th Ed. Pearson Prentice Hall

The Project Management Institute is the major project management organization / professional society defines and standardize the body of knowledge (PMBOK) has an important credentializing function

Founded in 1969

Very significant growth from 7,500 members in 1990 to over 260,000 in 2007

The Project Management Journal and PM Network are the leading project management journals

Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

Recent Changes in Managing Organizations – The replacement of traditional hierarchical

management with more consensual forms. The increasing adoption of the “systems

engineering” approach to problem solving. The establishment of projects as the

preferred way to accomplish the organizations goals.

Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

NASA: A day in the life of a project manager (3 videos from the Palatine Group). Project managers who worked on the Mars Pathfinder project talk about their experience and what it takes to be a good project manager.

Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

“A temporary endeavour undertaken to create a unique product or service”

▪ Project Management Institute (2004)

How do we distinguish a project from other kinds of work?

Major characteristics of a project Importance – in the eyes of the organization (not necessarily

size) Performance – well defined set of goals Life cycle with a finite due date Interdependencies – interaction between project activities, and

with other activities in the organization Uniqueness – even routine project produce a unique result Resources – budgets, personnel etc…..are always limited Conflict – over cost, schedule, resources, requirements. Between

stakeholders, between team members. There is always conflict in PM.

Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

Non-projects: Routine tasks that are performed again and again (projects are one-time events)

Quasi-projects (Bill, would you look into this?)are those that do not have a specific task identified, no specific budget, and no specific deadline defined. Although there are some uncertainties, project management skills can still be used to manage them.

Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

The main purpose for initiating a project is to accomplish some goal

Project management increases the likelihood of accomplishing that goal

Project management gives us someone (the project manager) to spearhead the project and to hold accountable for its completion Better results Better control Better customer relations Better ROI

Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

Project management is hard!

Greater organizational complexityHigher probability organizational

policy will be violatedSays managers cannot accomplish

the desired outcomeConflict

Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

Figure 1-3Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

Figure 1-4Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

Figure 1-6Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

Estimate of project cost made at the start

Figure 1-7Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

Estimates of project cost made at time t0, t1 and t2

Follows the project life cycle

Part 1 - Project initiation project startup, organization and

proposals. Part 2 - Project planning and

implementation planning, scheduling, budgeting and

controlling projects Part 3 – Project execution

Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.

MS Project

Basecamp – an example of a hosted, “software-as-a-service” application

Meredith & Mantel (2009) Project management: a managerial approach. 7th ed. Wiley.