Lec01 Why Project Management

Lecture 1
Why Project Management?

By : Prof. Lili Saghafi
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall
Learning Objectives
After completing this chapter, students will be able to:
Understand why project management is becoming such a
powerful and popular practice in business.
Recognize the basic properties of projects, including their
definition.
Understand why effective project management is such a
challenge.
Differentiate between project management practices and
more traditional, process-oriented business functions.
Recognize the key motivators that are pushing companies
to adopt project management practices.
01-02
Learning Objectives
After completing this chapter, students will be able to:
Understand and explain the project life cycle, its
stages, and the activities that typically occur at each
stage in the project.
Understand the concept of project success, including
various definitions of success, as well as the alternative
models of success.
Understand the purpose of project management
maturity models and the process of benchmarking in
organizations.
Identify the relevant maturity stages that
organizations go through to become proficient in their
use of project management techniques.
01-03
Introduction
Examples of projects
Split the atom
Tunnel under the English Channel
Introduce Windows 7
Plan next Olympic games in London
Projects, rather than repetitive tasks, are now the

basis for most value-added in business
-Tom Peters
Thomas J. "Tom" Peters is an American writer on business
management practices, best known for In Search of
Excellence.
01-04
Process vs. Project Work
Process
Ongoing, day-to-day
activities to produce
goods and services
Use existing systems,
properties, and
capabilities
Typically repetitive
Project
Take place outside the
normal, process-oriented
world
Unique and separate from
routine, process-driven
work
Continually evolving
A project is a temporary endeavor undertaken to create

a unique product or service.
PMBoK 2008
01-05
Sales and Distribution PROCESS
M TD P A Y M E N TS
M TD
P A Y M E N TS
P A T IE N T P A Y M E N T
2
IN S U R A N C E
P A Y M E N T
D 4
S TA TE M E N T
P R O C E S S
P A Y M E N T
IN S U R A N C E
C O M P A N Y
P A T IE N T
A P P O IN T M E N T
R E Q U E S T
Y TD P A Y M E N TS
P A Y M E N T
D A TA
P A Y M E N T
U P D A TE
C L A IM
A M E R IC A N
M E D IC A L
A S S O C IA T IO N
C P T
C O D E S
D A TA
D 6
D A TA
D 3
H O U S E H O LD
U P D A TE
P R O V ID E R S
P R O V ID E R
U P D A TE
D 21
IN S U R A N C E
C A R R IE R S
IN S U R A N C E
C A R R IE R D A T A
IN S U R A N C E
U P D A TE
M TD C H A R G E S
S E R V IC E
C H A R G E IN S U R A N C E C O M P A N Y
R E P O R T
P R O D U C E
R E P O R TS
P R O V ID E R D A T A
FE E
A N D
S E R V IC E
D A TA
S E R V IC E
D A TA
D 7
H O U S E H O LD S
D 5
S E R V IC E
C H A R G E
S E R V IC E
D A TA
C H A R G E S
P R O V ID E R C H A R G E S
D A TA
D 1
H O U S E H O LD D A TA
1
P R O C E S S
S E R V IC E
D A TA
P E N D IN G
IN S U R A N C E C L A IM S
D 22
IN S U R A N C E
C L A IM D A T A
M TD P A Y M E N TS
P A T IE N T
D A TA
D 2
P A T IE N T S
C L A IM S T A T U S
S U M M A R Y
A P P O IN T M E N T L IS T
P A T IE N T
U P D A TE
M A IL IN G
LA B E LS
C A LL
L IS T
P R O V ID E R
R E P O R T
P R O V ID E R C H A N G E
IN S U R A N C E
C H A N G E
O F F IC E S T A F F
P R O V ID E R
P A T IE N T
H O U S E H O LD
C H A N G E
P A T IE N T C H A N G E
R E M IN D E R P O S T C A R D
Copyright 2013 Pearson Education, Inc. Publishing
as Prentice Hall
M A IN T A IN
R E C O R D S
PROJECTS EXAMPLES
Customizing your YouTube channel to attract more
customers for your products and visitors to your site

Here's the quick and easy way to customize your
YouTube channel to build brand awareness, while also
giving visitors a way and a reason to quickly reach your
web site and find your products.
PROJECTS EXAMPLES
Offering a much wanted service within your own niche
Here's an example of how my wife created a much

needed service for customers within her own niche
market. They asked for it, and she gave them what they
wanted.
Additional Definitions
A project is a unique venture with a beginning and an
end, conducted by people to meet established goals

within parameters of cost, schedule, and quality.
Buchanan & Boddy 92 , Buchanan, D.
Author: Boddy, D. PUBLISHER: Prentice Hall
Projects are goal-oriented, involve the coordinated
undertaking of interrelated activities, are of finite

duration, and are all, to a degree unique.
Frame 95
01-010
Project Definitions Summarized

A project can be considered any series of activities and
tasks that have:
Specific objectives to be completed within certain
specifications,
Defined start and end dates,
Funding limits,
Human and nonhuman resources, and
Multifunctional focus.
01-011
Elements of Projects
Complex, one-time processes
Limited by budget, schedule, and resources
Developed to resolve a clear goal or set of goals
Customer-focused
01-012
General Project Characteristics

Ad-hoc endeavors with a clear life cycle
Building blocks in the design and execution of
organizational strategies
Responsible for the newest and most improved products,
services, and organizational processes

Provide a philosophy and strategy for the management of
change
01-013
General Project Characteristics

involve crossing functional and organization boundaries
Traditional management functions of planning,
organizing, motivating, directing, and controlling apply

Principal outcomes are the satisfaction of customer
requirements within technical, cost, and schedule

objectives
Terminated upon successful completion of performance
objectives
01-14
Process & Project Management

Process
(Table 1.1)
Project
1. Repeat process or product
1. New process or product
2. Several objectives
2. One objective
3. Ongoing
3. One shot limited life
4. People are homogeneous
4. More heterogeneous
5. Systems in place to integrate
5. Systems must be created to
efforts
6. Performance, cost, & time known
integrate efforts
6. Performance, cost & time less
certain
7. Part of the line organization
7. Outside of line organization
8. Bastions of established practice
8. Violates established practice
9. Supports status quo
9. Upsets status quo
01-15
Project Success Rates

Software & hardware projects fail at a 65% rate,
Over half of all IT projects become runaways,
Only 30% of technology-based projects and programs are a
success.
Only 2.5% of global businesses achieve 100% project
success and over 50% of global business projects fail,
Average success of business-critical application
development projects is 32%, and
Approximately 42% of the 1,200 Iraq reconstruction
projects were eventually terminated due to
mismanagement or shoddy construction
01-16
Why are Projects Important?

1.
Shortened product life cycles
2. Narrow product launch windows

3. Increasingly complex and technical products
4. Emergence of global markets
5. Economic period marked by low inflation
01-17
Project Life Cycles

Man Hours
Conceptualization
Planning
Execution
Termination
Fig 1.3 Project Life Cycle Stages

01-18
Project Life Cycles

Conceptualization - the development of the initial
goal and technical specifications.

Planning all detailed specifications, schedules,
schematics, and plans are developed

Execution the actual work of the project is
performed
Termination project is transferred to the customer,
resources reassigned, project is closed out.
01-19
Project Life Cycles and Their Effects
FIGURE 1.4 Project Life Cycles and Their Effects

01-20
Quadruple Constraint of Project Success
Figure 1-6
01-21
Four Dimensions of Project Success
FIGURE 1.7
01-22
23
Six Criteria for IT Project Success

1.
System quality
2. Information quality
3. Use
4. User satisfaction
5. Individual impact
6. Organizational impact
01-24
Understanding Success Criteria

Iron Triangle Information System Benefits (Organization) Benefits (Stakeholders)
Cost
Maintainability
Improved efficiency
Satisfied users
Quality
Reliability
Improved effectiveness
Social and environmental
Time
Validity
Increased profits
Information quality
Strategic goals
Personal development
Use
Organization learning
Professional learning,
Reduced waste
impact
contractors profits
Capital suppliers, content
Project team, economic
impact to surrounding
community
Table 1.2
01-25
Spider Web Diagram (Figure 1.8)
01-26
Spider Web Diagram with Embedded

Organizational Evaluation
Figure 1-9
01-27
Developing Project Management Maturity

Project Management Maturity (PMM) Models
Center for Business Practices
Kerzners Project Management Maturity Model
Where is your company in its journey toward project management

excellence?
First, it assesses the way company is performing and the state of its
process at five different levels, factoring in variables such as
visibility, consistency and control.
The KPM3 will then give a detailed breakdown of organizational

score, as well as the scores of individual project managers.
It also benchmarks performance against that of other companies in

industry and in the wider marketplace.
01-28
Developing Project Management Maturity

Project Management Maturity (PMM) Models
ESI Internationals Project Framework
ESI International has been conducting Organizational and

Maturity Assessments in the domain of Project Management
for more than 10 years. The cornerstone of this assessment
capability has been ESIs (PMI-aligned) Project Management
Maturity Model Project Framework,
29
5 Project Management Maturity Levels of Project

Framework
30
SEIs Capability Maturity Model Integration

Capability Maturity Model Integrated (CMMI)
http://www.cimarroninc.com/products/processintegration/capability-maturity-model-integrated.shtml
31
Center for Business Practices PMM

Level 1: Initial Phase
Level 2: Structure, Process, and Standards
Level 3: Institutionalized Project Management
Level 4: Managed
Level 5: Optimizing
01-32
Kerzners PMM Model

Level 1: Common Language
Level 2: Common Processes
Level 3: Singular Methodology
Level 4: Benchmarking
Level 5: Continuous Improvement
01-33
ESI Internationals Project Framework

Level 1: Ad Hoc
Level 2: Consistent
Level 3: Integrated
Level 4: Comprehensive
Level 5: Optimizing
01-34
SEIs Capability Maturity Model Integration

Level 1: Initial
Level 2: Managed
Level 3: Defined
Level 4: Quantitative Management
Level 5: Optimizing
01-35
Project Management Maturity Generic Model
FIGURE 1.10
01-36
Project Elements and Text Organization
FIGURE 1.11 Organization of Text

01-37
Project Manager Responsibilities

1.
Selecting a team
2. Developing project objectives and a plan for
execution
3. Performing risk management activities
4. Cost estimating and budgeting
5. Scheduling
6. Managing resources
01-38
It is the responsibility of the project

manager to:
Understand the project requirements and ensure they are
thoroughly and unambiguously documented;
2. Prepare a project plan with achievable cost, schedule, and
performance goals;
3. Identify and manage project risks;
4. Ensure the project team is well-organized, adequately staffed, and
working well together;
5. Manage project cost, schedule, requirements, and design baselines
so they are traceable;
6. Report meaningful metrics for cost, schedule, quality, and risk;
7. Conduct regular status and design reviews;
8. Ensure the adequacy of project documentation and testing;
9. Maintain meaningful communications among project stakeholders;
and
10. Manage the project to attain the project goals and achieve
stakeholder satisfaction.
1.
39
For your Project
40
For Your Project
41
For Your Project
42
For Your Project
43
For Your Project
44
Overview of the Project Management

Institutes PMBoK Knowledge Areas
FIGURE 1.12
01-45
Video
Project Management
46
Summary
Understand why project management is becoming such a

powerful and popular practice in business today.

Recognize the basic properties of projects, including their
definition.
Understand why effective project management is such a
challenge.
Differentiate between project management practices and
more traditional, process-oriented business functions.
Recognize the key motivators that are pushing companies
to adopt project management practices.
01-47
Summary
Understand and explain the project life cycles, its stages,
and the activities that typically occur at each stage in the

project.
Understand the concept of project success, including
various definitions of success, such as the triple
constraint, as well as alternative models of success.
Understand the purpose of project management maturity
models and the process of benchmarking in organizations.
Identify the relevant maturity stages that organizations go
through to become proficient in their use of project
management techniques.
01-48

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Lecture 1

Why Project Management?

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

Projects, rather than repetitive tasks, are now the

Process vs. Project Work

A project is a temporary endeavor undertaken to create

Sales and Distribution PROCESS

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

customers for your products and visitors to your site

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

Here's an example of how my wife created a much

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

end, conducted by people to meet established goals

Projects are goal-oriented, involve the coordinated

undertaking of interrelated activities, are of finite

Project Definitions Summarized

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

General Project Characteristics

services, and organizational processes

General Project Characteristics

organizing, motivating, directing, and controlling apply

requirements within technical, cost, and schedule

Process & Project Management

1. Repeat process or product

1. New process or product

3. One shot limited life

4. People are homogeneous

5. Systems in place to integrate

5. Systems must be created to

7. Part of the line organization

7. Outside of line organization

8. Bastions of established practice

8. Violates established practice

9. Supports status quo

9. Upsets status quo

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

Project Success Rates

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

Why are Projects Important?

Shortened product life cycles

2. Narrow product launch windows

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

Project Life Cycles

Fig 1.3 Project Life Cycle Stages

Project Life Cycles

goal and technical specifications.

schematics, and plans are developed

resources reassigned, project is closed out.

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

Project Life Cycles and Their Effects

FIGURE 1.4 Project Life Cycles and Their Effects

Quadruple Constraint of Project Success

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

Four Dimensions of Project Success

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

Six Criteria for IT Project Success

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

Understanding Success Criteria

Social and environmental

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

Spider Web Diagram (Figure 1.8)

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

Spider Web Diagram with Embedded

Developing Project Management Maturity