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A Managerial Approach
Project Management
A Managerial Approach
Chapter 1: Projects in
Contemporary Organizations
Projects in Contemporary
Organizations
The definition of a “project”
Why project management?
The project life cycle
The structure of this text
Chapter 1-1
Projects in Contemporary
Organizations
Project Management has emerged
because the characteristics of our turn-of-
the-century society demands the
development of new methods of
management
Many forces have fostered the emergence
and expansion of Project Management
Chapter 1-1
Forces Of Project
Management
3 Paramount Forces driving Project
Management:
1. The exponential expansion of human knowledge
2. The growing demand for a broad range of complex,
sophisticated, customized goods and services
3. The evolution of worldwide competitive markets for the
production and consumption of goods and services
All 3 forces combine to mandate the use of
teams to solve problems that used to be
solvable by individuals
Chapter 1-2
Objectives of a Project
Project Objectives:
Performance
Time
Cost
Expectations of clients are not an
additional target, but an inherent part of
the project specifications
Chapter 1-3
Objectives of a Project
Project Objectives:
Chapter 1-4
The Professionalism of
Project Management
Complexity of problems facing the project manager
Growth in number of project oriented organizations
The Project Management Institute (PMI) was established in 1969
By 1990 it had 7,500 members
5 years later, over 17,000 members
And by 1998, it had exploded to over 44,000 members
This exponential growth is indicative of the rapid growth
in the use of projects
Also reflects the importance of PMI as a force in the
development of project management as a profession
Chapter 1-5
Project Management
Institute
Chapter 1-6
Recent Changes in
Managing Organizations
The process of managing organizations has been
impacted by three revolutionary changes
1. Accelerating replacement of traditional, hierarchical
management by participatory management
2. Currently witnessing the adoption of the “systems
approach” (sometimes called “systems engineering”)
3. Organizations establishing projects as the preferred
way to accomplish the many specific changes that
must be made when the organization attempts to alter
its strategy
Chapter 1-7
The Definition of a
“Project”
Chapter 1-8
Characteristics of a
Project
Have a purpose
Have a life cycle
Interdependencies
Uniqueness
Conflict
Chapter 1-9
Why Project Management?
Companies have experienced:
Better control
Better customer relations
Shorter development times
Lower costs
Higher quality and reliability
Higher profit margins
Sharper orientation toward results
Better interdepartmental coordination
Higher worker morale
Chapter 1-10
Why Project Management?
Companies have also experienced some
negatives:
Greater organizational complexity
Increased likelihood of organizational policy
violations
Higher costs
More management difficulties
Low personnel utilization
Chapter 1-11
The Project Life Cycle
Chapter 1-12
The Project Life Cycle
Chapter 1-13
The Project Life Cycle
Time distribution of project effort is characterized by
slow-rapid-slow
Chapter 1-14
The Project Life Cycle
Chapter 1-15
The Project Life Cycle
Unlike the more conventional life cycle, continued inputs of effort at
the end of the project produce significant gains in returns
Chapter 1-16
The Project Life Cycle
Chapter 1-18
Risk During Project Life
Cycle
Uncertainty decreases as the project moves toward
completion
Chapter 1-19
Summary
Chapter 1-22
Summary
The three prime objectives of project
management are:
1. To meet specified performance
2. To do it within specified costs
3. Complete on schedule
Chapter 1-1
Project
Chapter 1-8
Characteristics of a
Project
Have a purpose
Have a life cycle
Interdependencies
Uniqueness
Conflict
Chapter 1-9
Why Project Management
Project Objectives:
Performance
Time
Cost
Expectations of clients are not an
additional target, but an inherent part of
the project specifications
Chapter 1-3
Project Life Cycle
Time distribution of project effort is characterized by
slow-rapid-slow
Chapter 1-14
Structure
Initiation: 2-5
Strategic Management and Project Selection
The Project Manager
Managing Conflict and the Art of Negotiation
The Project in the Organizational Structure
Planning: 6-9
Activity and Risk Planning
Estimating Costs and Risks
Scheduling
Resource Allocation
Execution: 10-13
Monitoring and Information Systems
Control
Auditing
Termination
Chapter 1-3