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    Project ManagementProject Management

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    Projects in Contemporary

    Organizations Project Management has emerged because the

    characteristics of our turn-of-the-century

    society demands the development of newmethods of management

    Many forces have fostered the emergence and

    expansion of Project Management

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    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 byindividuals

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    Recent Changes in Managing

    Organizations Three salient characteristics distinguish modern

    society from earlier period of history

    INTERD

    EPEND

    ANCY, COMPLEXITY AND

    R

    APID

    RADICAL CHANGE

    The process of managing organizations has been impacted bythree 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 wayto accomplish the many specific changes that must be made

    when the organization attempts to alter its strategy

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    What is Project Management?Project Management is the art of directing

    and coordinating human and material

    resources throughout the life of a project byusing modern management techniques to

    achieve predetermined objectives of scope,

    cost, time, quality and participation

    satisfaction

    Project Management Institute (PMI) PMBOK

    Report

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    What is Project Management?Simpler definition of a project

    A well defined set of activities which

    has a beginning

    has an end

    achieves a goal

    is conducted by people uses resources

    is a non-routine event

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    Which are Projects? Why Not? Picking a college

    Planning a wedding

    Getting dressed every morning Hiring a new employee

    Buying a new car

    Staying abreast of topics in your field Building a new classroom

    Maintaining an information system

    Developing a new SW program

    Answering customer service calls

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    What is Project Management? Success of a project is (typically)

    measured by three dimensions

    quality/performance (meetingspecifications)

    timeliness

    within budget

    More important?

    constituent satisfaction

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    COST QUALITY

    TIME SAF

    ETY

    PROJECT

    SUCCESS

    Cheapest

    Economical

    Best

    Adequate

    Reasonable

    Fastest

    Satisfactory

    Safest

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    Objectives of a Project 3 Project Objectives:

    Performance

    Time Cost

    Expectations of clients are not an additional

    target, but an inherent part of the projectspecifications

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    Objectives of a Project 3 Project Objectives:

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    The Definition of a Project Must make a distinction between terms:

    Program - an exceptionally large, long-range objective

    that is broken down into a set of projects Project -

    Task- set of activities comprising a project

    Work Packages - division of tasks

    Work Units - division of work packages

    In the broadest sense, a project is a specific, finite

    task to be accomplished

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    Characteristics of a Project

    Have a purpose

    Uniqueness

    Unfamiliarity

    Temporary

    Have a life cycle Interdependencies

    Conflict

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    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

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    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

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    Project Management Framework

    - PMBOK

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    9 Project Management

    Knowledge Areas Knowledge areas describe the key competencies

    that project managers must develop

    4 core knowledge areas lead to specific projectobjectives (scope, time, cost, and quality)

    4 facilitating knowledge areas are the means throughwhich the project objectives are achieved (humanresources, communication, risk, and procurement

    management 1 knowledge area (project integration management)

    affects and is affected by all of the other knowledgeareas

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    Project Management Tools and

    Techniques Project management tools and techniques assist

    project managers and their teams in various

    aspects of project management Some specific ones include

    Project Charter and WBS (scope)

    Gantt charts, network diagrams, critical path analysis,

    critical chain scheduling (time)

    Cost estimates and earned value management (cost)

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    Project Stakeholders

    Stakeholders are the people involved in or

    affected by project activities

    Stakeholders include the project sponsor and project team

    support staff

    customers users

    suppliers

    opponents to the project

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    Sample WBS for Intranet Project

    in Chart Form

    Concept

    Design User Interface

    Design Server Setup

    Develop Server

    Support Infrastructure

    Web Site

    Design

    Develop Pages

    and Links

    Develop

    Functionality

    Content

    Migration/Integration

    Testing

    Web Site

    Development

    Roll Out Support

    Intranet Project

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    Sample Gantt Chart

    The WBS is on the left, and each tasks start and finish date

    are shown on the right using a calendar timescale.

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    Sample NetworkDiagram

    Each box is a project task from the WBS. Arrows show dependencies

    between tasks. The bolded tasks are on the critical path. If any tasks on the

    critical path take longer than planned, the whole project will slip

    unless something is done.

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    More Advantages of Project

    Management* Bosses, customers, and other stakeholders do not like

    surprises

    Good project management (PM) provides assuranceand reduces risk

    PM provides the tools and environment to plan,monitor, track, and manage schedules, resources,costs, and quality

    PM provides a history or metrics base for futureplanning as well as good documentation

    Project members learn and grow by working in a

    cross-functional team environment*Knutson, Joan, PMNetwork, December 1997, p. 13

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    How Project Management (PM) Relates

    to OtherDisciplines

    Much of the knowledge needed to manageprojects is unique to PM

    However, project managers must also haveknowledge and experience in

    general management

    the application area of the project Project managers must focus on meeting

    specific project objectives

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    Project Management and Other

    Disciplines

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    History of Project Management

    Modern project management began with theManhattan Project, which the U.S. military led todevelop the atomic bomb

    In 1917 Henry Gantt developed the Gantt chart as atool for scheduling work in job shops

    In 1958, the Navy developed PERT charts

    In the 1970s, the military began using projectmanagement software, as did the constructionindustry

    By the 1990s, virtually every industry was usingsome form of project management

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    Project Management Software

    There are hundreds of different products to assist inperforming project management

    Three main categories of tools: Low-end tools: Handle single or smaller projects well, cost

    under $200 per user

    Midrange tools: Handle multiple projects and users, cost

    $200-500 per user, Project 2000 most popular High-end tools: Also called enterprise project management

    software, often licensed on a per-user basis

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    You Can Apply Project

    Management to Many Areas Project management applies to work as well

    as personal projects

    Project management applies to many

    different disciplines (IT, construction,

    finance, sports, event planning, etc.)

    Project management skills can help ineveryday life

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    The Project Life Cycle Projects 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 fourphases of the project life cycle.

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    FIG E 1.2 r j t if l Eff rt

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    Phases of the Project Life Cycle

    1 The 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).

    However, not all situations involve a formal RFP.

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    Phases of the Project Life Cycle

    2 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).

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    Phases of the Project Life Cycle

    3 The third phase is performing the project.

    Different types of resources are utilized.

    Results in the accomplishment of the project objective.

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    Phases of the Project Life Cycle

    4 The final phase is terminating the project.

    Perform close-out activities

    Evaluate performance

    Invite customer feedback

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    Planning the Project Clearly define the project objective

    Divide and subdivide the project

    Define the specific activities to be performed

    Graphically portray the activities in a network diagram

    Make a time estimate for how long it will take to completeeach activity.

    Make a cost estimate for each activity.

    Calculate a project schedule and budget

    Determine if project can be accomplished within time,funds, and available resources

    Develop a baseline plan

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    Planning the Project (Cont.) Keep in mind:

    Projects overrun their budgets, miss completion dates,

    or only partially satisfy their technical specificationsbecause there is no viable baseline plan

    The people involved in performing the project shouldparticipate in planning the work; they are mostknowledgeable

    Participating in the planning helps individuals becomecommitted to accomplishing it

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    Thank you