Copyright 2009 John Wiley & Sons, Inc.
Chapter 1
Projects in Contemporary Organizations
Introduction
Much of project management developed by the military
– Navy’s Polaris program– NASA’s space program– Strategic defense initiative
Project management has found wide acceptance in industry
It has many applications outside of construction– Managing legal cases– Managing new product releases
Introduction Continued
Main forces in driving the acceptance of project and other forms of management:
1. The exponential growth of human knowledge2. The growing demand for a broad range of
complex goods and services3. Increased worldwide competition
All of these contribute to the need for organizations to do more and to do it faster
Project management is one way to do more faster
Projects Tend to be Large
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
Project Management Also Getting Smaller
1. More people are seeing the advantages of project management techniques
2. The tools are become cheaper
3. The techniques are becoming more widely taught and written about
Main Goals of Project Management
1. Time2. Cost3. Performance
Time, cost, and performance are all related on a project
Direct Project Goals: Performance, Cost, Time
Figure 1-1
Project Management Institute (PMI)
The Project Management Institute is the major project management organization
Founded in 1969 Grew 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
Project Manager
Project manager is the key individual on a project
Project manager is like a mini-CEOWhile project manager always has
responsibility, may not have necessary authority
Trends in Project Management
Achieving strategic goalsAchieving routine goals Improving project effectivenessVirtual projectsQuasi-projects
Recent Changes in Managing Organizations
1. Consensual management
2. Systems approach
3. Projects as preferred way to accomplish goals
The Definition of a “Project”
Modern project management began with the Manhattan Project
In the early days, project management was used mainly for very complex projects
As the tools became better understood, they began to “trickle down” to smaller projects
It has also moved out of just manufacturing to services
Major Characteristics of a Project
Importance Performance Life cycle with a finite due date Interdependencies Uniqueness Resources Conflict
Why Project Management?
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
Negative Side to Project Management
Greater organizational complexityHigher probability organizational policy
will be violatedSays managers cannot accomplish the
desired outcomeConflict
The Project Life Cycle
Figure 1-3
Time Distribution of Project Effort
Figure 1-4
Another Possible Project Life Cycle
Figure 1-5
Risk During at the Start of the Life Cycle
Figure 1-6
Risk During the Life Cycle
Figure 1-7
The Structure of this Text
Follows the project life cycleSome topics stand-aloneOther topics incorporated throughout
Part I: Project Initiation
1. Projects in Contemporary Organizations
2. Strategic Management and Project Selection
3. The Project Manager
4. Negotiation and the Management of Conflict
5. The Project in the Organizational Structure
Part II: Project Planning
6. Project Activity Planning
7. Budgeting and Cost Estimation
8. Scheduling
9. Resource Allocation
Part III: Project Execution
10. Monitoring and Information Systems
11. Project Control
12. Project Auditing
13. Project Termination
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