Overview

Authors: Prof. F. Schindler (PhD), Dr. R. Gross (PhD)

Lecturer: Prof. Dr.-Ing. Dieter Pumpe

with the support of

Dipl.-Ing. T. Hanel

and professional input for the case studies from

Prof. Dr. G. Goldmann

D. Weiss (ME)
D. v. Tengg-Kobligk
Dipl.-Ing. D. Schmitz

Last edit: 13 July 2012

Learning Targets

Man has always set out to accomplish specific objectives with limited resources since civilisation began e.g.
the construction of the pyramids some 4,500 years ago. However, the use of the term "project management"
in book titles probably first started in the 1960's [1]. Nowadays, projects have emerged as the means many
organisations use to achieve their strategic goals. Examples of projects could be implementing Energy
Efficiency (EE) and Renewable Energy (RE) programmes, an Enterprise Resource Planning (ERP) system,
constructing a wind park or implement a photovoltaic plant in South America, supply chain optimisation in
Africa, transporting wind turbine towers to Asia, outsourcing energy auditing activities or starting up a new
joint-venture.

After working through the learning unit, the student should be able to provide answers to the following
questions:

How do projects differ from ongoing operations?

What are the four project constraints?
How can projects be categorised?
What are the different organisational forms?
What are some of the reasons for project failure?

This learning unit is structured as follows: First, projects are defined and distinguished from ongoing
operations, and the reasons for the ever increasing trend of management by projects are given. The four main
project constraints of scope, quality, time and cost are then discussed. The following chapters presents some
of the various attributes used for categorising projects, in particular, project complexity. Chapter 6 focuses on
the various organisational structures in which projects take place. Chapter 7 provides an overview of the
reasons for project failure. The final chapter briefly puts projects in the broader context of programmes and
portfolios.

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Structure of the Learning Unit

Overview
1 Definition of a Project
2 Projects versus Ongoing Operations
3 Reasons for Projects and Project Management
4 Constraints of Scope, Quality, Time and Cost
5 Project Categorisation
6 Project Organisation
7 Project Success and Failure
8 Multi Projects
Exercises
Summary
References
Appendix
Copyright and Terms of Use
Sitemap

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1 Definition of a Project

What is a project?

This question is best addressed by looking at some of the various definitions found in the literature:

"A temporary endeavour undertaken to create a unique service, product, or result." [2]
"A unique, transient endeavour undertaken to achieve a desired outcome." [3]
"A temporary organisation that is needed to produce a unique and predefined outcome or result at a
pre-specified time using predetermined resources." [4]
"A unique process, consisting of a set of coordinated and controlled activities with start and finish dates,
undertaken to achieve an objective conforming to specific requirements,including the constraints of time,
cost and resources" [5]
"A series of activities aimed at bringing about clearly specified objectives within a defined time-period and
with a defined budget." [6]

From the preceding definitions it becomes clear that a project is built on activities. Three other main points of the
project definition may be extracted, along with their associated parameters:

Scope - A unique set of activities to produce a defined outcome (to reach a specific objective/goal).
Costs - Parameter for a specific allocation of resources (related to specific activities).
Time - Period between a specific start and end date ( schedule).

A project is usually performed in order to achieve some sort of benefit, business or otherwise. A couple of
alternative project definitions which express most importantly the reason for doing a project are:

"The work required to take an opportunity and convert it into an asset." [7]
A management environment that is created for the purpose of delivering one or more business products
according to a specified business case." [4].

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2 Projects versus Ongoing Operations

The work performed by an organisation falls into the categories of either projects or ongoing operations. Take
the example of a photovoltaic power plant : a project might be the introduction of a new photo voltaic system
whereas an ongoing operation would be the production of solar energy. Projects and ongoing operations are
quite similar. They both consume resources and produce products or services. They both cost money and require
planning to be done successfully. Their difference lies in the temporal factor. Ongoing operations do not have
definite starting and stopping points whereas projects have a beginning and end. A project ends when its
objectives have either been reached or when it becomes clear that they cannot be reached or when the original
need for the project no longer exists. A project provides a unique product or service and for this reason it must be
planned, otherwise one could just repeat exactly what had been done before. The temporary nature of a project
means that concerns about resources, finance, quality, risk and communication arise, which would not normally
be there when managing standard operations. Projects tend to be more risky, more complex and have higher
priority than ongoing operations, though this is not always a reliable means of making the distinction.

Project Ongoing Operation

Temporary - definite beginning and end Continuous - no definitive beginning and end

Produces a unique outcome Produces the same outcome repeatedly

Has its own budget Costs are booked to the appropriate cost centre

Usually involves risk Not usually risky

Usually complex Usually simple

Usually has a higher priority Usually has a lower priority

Table 1: Comparison of projects with ongoing operations

3 Reasons for Projects and Project Management

The number of projects, programmes and portfolios is growing at an exponential pace, worldwide [8]. Every
multinational company has hundreds of projects. One of the reasons for this is that the process for managing
projects is flexible and adaptable to nearly anything. The processes taking place in project management can be
categorised into initiating, planning, executing, controlling or closing processes [2], and these will be described in
subsequent learning units. This model of doing things can be applied to almost any activity. Some sectors such
as construction, IT or new technologies, such as renewable energy systems have always done business by
projects. Other sectors like manufacturing are moving toward using a managed-by-project approach, since they
have to respond to the ever increasing need for change. Projects bring about change and project management is
recognised as the most efficient way of managing change, since it can respond very rapidly to changing
conditions inside and outside of an organisation.

As competition increases, organisations are being forced to develop high quality products at lower cost and in
shorter times. Project management helps organisations to make better use of their resources, reduce
development times and costs, anticipate risks and achieve greater focus on results and quality. The use of proper
project management in predevelopment activities, such as product definition and planning, help companies to
better understand customer requirements and increase the chances of new product success.

4 Constraints of Scope, Quality, Time and Cost

Structure of Chapter 4

4.1 Constraints of Scope, Quality, Time and Cost (1)

4.2 Constraints of Scope, Quality, Time and Cost (2)

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4.1 Constraints of Scope, Quality, Time and Cost (1)

The three project parameters of scope (defines project boundaries) cost (budget) and time (schedule) constrain
the project and a trade-off must typically be made among them. The triple constraint is often depicted as the "iron
triangle", first described in 1969 [1], with the constraints forming its sides. Actually, there is a fourth project
parameter, the quality grade required by the project, so the constraints can be represented as a square or
tetrahedron [9], [10].

Figure 1: Project parameter tetrahedron

As shown in figure 2.1, each pair of parameters expresses a certain aspect. For example, the scope-cost
parameter pair expresses the viability of a project, i.e. whether it can actually be done, and the time-cost pair
expresses the effort being put in. The skill for any project manger is in completing a project with an optimal
trade-off of scope, quality, cost and time. The logical sequence of the 4 project parameters is scope, quality, time
and cost. This is because cost depends upon time (duration of the activities), time depends upon quality (level of
effort required) and the scope (deliverables) must be defined before the quality grade of the deliverables can be
addressed [11]. Altering any one of the constraints has an effect on the others. If the customer wants to bring
forward the end date of the project, then this is likely to increase its cost and/or reduce its scope and/or reduce its
quality. Making undocumented additions to the scope of the project as it progresses is likely to delay it and
increase its cost, a phenomenon known as scope creep.

4.2 Constraints of Scope, Quality, Time and Cost (2)

Keeping other parameters constant, the variation of cost with time looks something like the curve shown in figure
1.2:

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Figure 2: Project cost as a function of project duration

There is a project duration for which the cost is a minimum. Trying to force the duration below its optimal value
introduces time pressure, which has the tendency to increase the amount of errors made by the workers, which
then induce extra costs by having to be corrected later on. Similarly, overtime incurs higher labour costs and too
much decreases the overall productivity of the workers. On the other hand, letting the project last longer than its
optimal duration also decreases the worker productivity.

Trying to throw extra resources at a project running behind schedule may make things even worse. For software
projects in particular, it was observed in "The Mythical Man-Month" first published in 1975 [12] that adding more
workers to a late project makes it even later, since the new programmers need time to make themselves familiar
with the project and the communication overhead also increases.

5 Project Categorisation

Structure of Chapter 5

5.1 Project Categorisation (1)

5.2 Project Categorisation (2)
5.3 Project Categorisation (3)

5.1 Project Categorisation (1)

Projects take place in all kinds of industries, institutions, governmental and non-governmental organisations.
Projects can be any size and can last anything from a few hours to many years. They can take place at any level
of an organisation and involve only a small part or nearly all of it. They can also take place among many
geographically and nationally dispersed organisations. Project categorisation involves identifying types of
projects that have similar characteristics. The need for designing project categorisation systems includes the
following reasons [13], [14]:

Selecting the right projects. An organisation wishes to prioritise projects within a portfolio so that they are
aligned with strategy and maximise the return on investment.
Executing the projects right. An organisation wishes to determine the competencies required for the
project managers, develop them within the organisation, and assign them to the projects.

Project categorisation systems also benefit developers of project management software, consultants, trainers,
educators and professional associations. One system [14] has categorised projects according to their area of
application and end results. Besides common project management practices, each area of application also has
certain characteristics peculiar to that particular area, such as technical terminology, sequence and interaction of
project management processes, project life cycle or impact on society.

5.2 Project Categorisation (2)

Project category Project subcategory

Adaptation to climate change Altering farming practices

Construction of dams (sea walls)
Development of new crops
Green buildings

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Project category Project subcategory
Aerospace/Defence Defence systems
Space
Military operations

Business and organisational change Acquisition/Merger

Management process improvement
New business venture
Organisation restructuring
Legal proceeding

Communication systems Network communications systems

Switching communications systems

Energy Wind energy parks/farms

Photovoltaic power plants
Solar thermal Energy (collectors/heating)
Biogas plants
Geothermal energy
Energy Efficiency

Events International events

National events

Facilities Facility decommissioning

Facility demolition
Facility maintenance and modification
Facility design/procurement/construction

Information systems Developemt of new software

International development Agriculture/rural development

Education
Environment
Health
Nutrition
Population
Sanitation
Small-scale enterprise
Infrastructure
Water supply

Media and entertainment Motion picture

TV segment
Live play or music event
Video Games

Mitigation of Climate Change Greenhouse gas (GHG) emission avoidance / reduction

Carbon Capture and Sequestration (CCS)
Increase energy efficiency (industrial/domestic)
Use Renewable energies

Product and service development

Information technology hardware
Industrial product/process
Consumer product/process
Pharmaceutical product/process
Service (financial, other)

Research and development Environmental

Industrial
Economic development
Medical

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Project category Project subcategory
Scientific

Table 2: Project categories

Examples of application area specific practices include:

• Construction. Almost all work is done under contract.

• Bioscience. This environment is very strongly regulated. New drug development projects are highly risky, costly
and have a small success rate.
• Government contracting. Government acquisition regulations apply.
• Consulting. Project manager also has sales and marketing responsibilities.

5.3 Project Categorisation (3)

Another system [13] has listed 35 attributes for project categorisation commonly used:

Nature of work Organisational benefits Project phase Time critical Pa

Client/customer Deliverables Resources Risk type Ke

Complexity Priority Technology Sector St

Cost Contract type Clarity of goals/objectives Organisational involvement Pr

Size Impact Time Technological uncertainty Ri

Strategic importance Funding source Discipline Customer involvement M

Risk level Familiarity Geographical location Client relationship Re

Table 3: Project categorisation attributes

Project complexity is one of the most common attributes and usually signifies project scope, technical complexity,
and the number of functions or skills involved [15]. The complexity referred to here should not be confused with
the application of complexity theory to project management, which is described in learning unit 2, chapter 7.1. A
project can be rated on a points scale against the 7 factors, giving a total sum of points, which then determines
the level of performance required by the project manager. The tasks performed by a project manager in different
projects are usually quite similar but the level of competency required of the project manager in performing those
tasks will depend upon the complexity of the project.
The Crawford-Ishikura factor table [16] identifies 7 factors that affect the management complexity of a project as
follows:

1. Stability of the surrounding permanent organisation.

2. Amount of different disciplines involved in performing the project.
3. Implications of performing the project in legal, social or environmental terms.
4. Size of the possible financial gain or loss for the interested parties.
5. Strategic importance of the project to the performing organisation.
6. Degree to which the interests of the stakeholders with regard to the characteristics of the project's product
are in unison.
7. Number and variety of interfaces between the project and other organisational entities.

6 Project Organisation

Projects take place in a customer-supplier environment:

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Figure 3: Customer-supplier environment

The customer-supplier environment can take many different forms. At the simplest level both customer and
supplier are the same entity. The other extreme may involve a consortium or legal hierarchy of customers and/or
suppliers. Both customer and supplier may belong to the same corporate body (in-house), to separate bodies
(external) or to a mixture of both. A bidding process may sometimes be used to appoint the supplier. For the
purposes of running a project, a temporary organisation structure is created out of the customer and supplier
organisation structures. The project owner or project sponsor is the individual or organisation ultimately
accountable for the project's success or failure and comes from the customer side. The project manager may
come from either the customer or supplier side or from outside.

The structure of the larger organisation(s) in which a project takes place will influence the project, since this has a
bearing on aspects such as the allocation of resources and reporting relationships

Structure of Chapter 9

6.1 Functional Organisations

6.2 Projectised Organisations
6.3 Matrix Organisations (1)
6.4 Matrix Organisations (2)

6.1 Functional Organisations

This is the traditional and most common form of organisational structure, which groups similar operations into
departments, e.g. accounts, personnel, IT or marketing. All employees in a department report to the department
head, who in turn reports to a manger in the next level of the hierarchy, e.g. the divisional head, or directly to the
top management level, i.e. the CEO, if no such intermediate level(s) exist. This type of organisation is
bureaucratic since formal communication must travel up and down the hierarchy. Project managers in a
functional organisation are usually part-time, dividing their time between the project and their normal duties as a
department head or member of staff. Full-time contract project managers in functional organisations have little or
no authority, since they must consult with functional heads in order to get funds and resources released.

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Figure 4: Functional organisation

Some of the advantages of the functional organisational form are that budgeting and cost control are easier to
perform, technical expertise concentrated in departments is easier to develop, and each employee must report to
only one person. Some of the disadvantages are that the project coordination responsibility is spread across
different departments (no individual person is directly responsible). Also the response to customer needs is slow,
since customer communications go via the top management. Projects usually fall behind schedule in the
functional organisation.

6.2 Projectised Organisations

The projectised or pure product organisation is the opposite of the functional organisation. This type of
organisation is designed for doing projects. The project manager is full-time, has full authority over the project
and reports directly to the CEO. All project team members work solely on the project and must only report to the
project manager. Support functions such as accounts and personnel also report to the project manager. Fast
reaction times are enabled and projects are usually completed on schedule.

Figure 5: Projectised organisation

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Some of the disadvantages of the projectised organisation are that sharing personnel between projects is not
possible, which increases costs, and the development of strong technical expertise in functional groups is
impeded. Once a project is completed, the team members are returned to a pool and may be laid off for a while.
Competition for equipment and facilities among projects is also a source of conflict.

6.3 Matrix Organisations (1)

As organizations take more multidisciplinary approaches to accomplishing work, Matrix Management can prove
to be an effective tool in Resource Management. The traditional form of organizations often consists of horizontal
layers with a distinct line of command, Matrix Management is opposed to this traditional management structue
and allows individuals to report to multiple people for example to heads of functional and operational
departments. In other words, in Matrix Management organizational structure is often associated with more
multidisciplinary approaches to accomplish tasks and project team member reports to, and is accountable to, two
or more different managers. Matrix organisations result from combining the functional and projectised forms and
are the most complicated. The project manager and functional managers share responsibility for the project and
must collaborate. The project managers coordinate the project activities and the functional managers maintain
the technical performance levels. The matrix organisation exists in strong, balanced and weak forms, according
to how much authority is bestowed upon the project managers. In the strong matrix the authority of the project
manager approaches that of the projectised organisation, while in the weak matrix he or she has few
management powers over the team and other resources. In the balanced matrix the project manager has partial
authority to commit resources to the project. Functional staff members are relieved from most of their functional
duties for the duration of the project but have to report both to their functional managers and the project manager.
The staff can also be shared between different projects, helping to reduce costs.

Figure 6: Matrix organisation

6.4 Matrix Organisations (2)

Some of the disadvantages of the matrix organisation are that the work and communication flows are
multidimensional, making it harder to monitor and control, and double work can also occur. As a result, more
administration overhead is also needed to develop procedures and policies. Nevertheless to be able to work in a
Matrix management structure is often demanded in the field of renewable energy as can be seen in this example:

Beispiel

Project manager Job offer

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One example from a job offer in the middle east (Egypt; Syria, Lybia) (http://unjobs.org/vacancies
/1240591736612):
Area: Climate Change; Development Plans; ERP; Electrical Engineering; Electrical Engineer; Energy Efficiency;
Industrial Sector; Natural Gas; Private Sector; Renewable Energy; Sustainable Development

Senior Energy Specialist, Cairo

Closing Date: Tuesday, 28 April 2009 (closed)
Job Title Sr Energy Spec.,
Location Cairo, Egypt
Language Requirements Arabic [Essential]; English [Essential]
Appointment Type Term (Duration: 2 yrs)

Background / General description

...The Energy program in Egypt comprises four energy projects under supervision, and additional electricity,
energy efficiency, renewable energy and natural gas projects are in the pipeline. In addition, the Bank is assisting
the government through sector work in energy pricing, energy efficiency, regulation and private sector
participation as well as commercial development of renewable energy. The program is the largest energy
program in the region.
The Senior Energy Specialist plays a key role within the ongoing energy program in Egypt, and will be expected
to be very proactive in deepening the Bank's knowledge of the sector, building a network of contacts, and in
identifying new opportunities.

Duties and Accountabilities

The specific responsibilities of the Senior Energy Specialist for the Egypt Energy Program are:
1. Follow on a day-to-day basis the energy portfolio and pipeline through effective communication with the key
counterparts in Egypt and colleagues in the Cairo Office and in HQ.
2. Have regular meetings with key clients and stakeholders to ensure quality and timely deliverables; report back
to Sector Manager and Task Team Leaders on progress of deliverables and contributions (regular reports should
be prepared on this basis).
...
6. Proactively pursue follow-up of project and sector work and back the Task Team Leader based in HQ up with
analytical and administrative support.
7. Provide input to key documents on the energy sector, key challenges and development plans.
8. Ensure close collaboration with colleagues ... in activities related to energy, energy efficiency, and climate
change.
...
11. If requested, provide information on energy efficiency assessments and programs in the Egyptian industrial
sector.

General Competencies

1. Ability to operate effectively in a matrix management environment, both as a team leader

and team member.

2. Ability to lead a team of professionals in the execution of projects.

3. Ability to coach, mentor and develop more junior staff.
4. Ability to deal sensitively in multi-cultural environments and build effective working relations with clients and
colleagues.
5. Effective verbal and written communication skills.

Minimum Education/Experience at recruitment/selection

1. Minimum Education: MA/MS (in electrical engineering or related discipline)
2. Minimum Years of Relevant Experience: 8

7 Project Success and Failure

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Martin Cobb from the Treasury Board of Canada Secretariat was once quoted as saying back in the 1990's:

"We know why projects fail; we know how to prevent their failure - so why do they still fail?" [17].

This apparent paradox remains true today, and the challenge still remains to dramatically improve the success
rate of projects.

For a project to be considered successful, the project must be completed on schedule, on cost and with the
scope and quality laid down in the project plan. These planned parameters define a single point on the schedule,
cost, scope and quality grid. Since very few projects are not completed without some trade-offs between
schedule, cost, scope and quality, one is usually satisfied if the end result lies in some region about this special
point. Some famous examples of failure to meet this point include [18]:

Concorde supersonic aeroplane (cost overrun by 1100 %).

Sydney Opera House (cost overrun by 1400 %).
Channel Tunnel (cost overrun by 230 %).

In fact, cost overruns can be found in 90 % of all construction mega-projects in 20 countries ranging from Europe
to Asia [19].

In addition to keeping close to the planned scope, quality, schedule and budget, a definition of project success
also includes [20]:

Not disturbing the main work flow of the project performing organisation.
Not changing the corporate culture.

Most importantly, the customer or user must also accept the results of the project. The IPMA definition of project
success as the "appreciation by the various interested parties of the project outcomes" [8] also hints to this.

Structure of Chapter 10

7.1 Reasons for Project Failure (1)

7.2 Reasons for Project Failure (2)
7.3 Reasons for Project Failure (3)
7.4 Role of Professionalisation

7.1 Reasons for Project Failure (1)

A recent global project management survey [21], involving 250 organisations from 12 different sectors in 16
different countries across the world, found that one in three projects fails to deliver on time or within budget. The
survey also found that more than half of all projects delivered results creating no tangible business benefits. This
is surprising, since the driving force behind most projects in a business environment is ultimately to be more
profitable. Project return on investment depends upon a combination of the following factors:

The organisation's commitment to change and level of executive support.

The scale, complexity and number of projects being driven simultaneously.
The project environment and the level to which this fosters project success.
The performance capability of the project teams and project individuals.

A study by the German Project Management Association (GPM Deutsche Gesellschaft für Projektmanagement)
[22] of 98 companies in Germany from 15 different sectors compared the 15 most successful with the 15 least
successful companies. The study identified the following factors present in the most successful companies and
lacking in the least successful:

Metrics in place for measuring project success.

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 Gathering of lessons learned to develop best practices.
Maintenance of a contract management knowledge base.
Changes in customer requirements lead to revisions in scope and cost estimates.
Purchasing department provides requested materials on time and to the desired quality.
Quality management is tightly integrated into the project processes.
Customer's quality expectations are met.
Project team members work enthusiastically on projects and there is no conflict with the line organisation.
Problems are openly communicated early on
Project team members are regularly paid bonuses for good work.

The results of the Standish Group's CHAOS research [23] are the most widely quoted statistics in the IT industry.
The Standish Group have completed two surveys in the United States on the success of projects, in 1994 the
success rate of IT projects was found to be 16 %, and in 2003 the success rate had increased to 34 %.

7.2 Reasons for Project Failure (2)

The two components of failure are [20]:

Planning failure. This occurs when achievable accomplishments differ from planned accomplishments.
Good project management practices can help to reduce this. However, having unrealistic expectations
about what is achievable will guarantee planning failure to occur.
Performance failure. This occurs when there is a failure to achieve what was actually achievable, and is
usually due to poor motivation, productivity, etc.

Figure 7: Failure components

7.3 Reasons for Project Failure (3)

Some of the factors that cause projects to fail include [24], [25]:

Area Reason for failure

Business cas Lack of business alignment.

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Area Reason for failure

Project objectives are unclear.

Requirements have major changes.
Scope Unrealistic time pressures.
High complexity.
The project is too big and too ambitious.

Not enough time spent on planning and structuring the project.

Planning Plans are not used correctly or used to guide the project forward.
The project organisation is not well defined, roles and responsibilities are vague.

Initial cost and schedule estimates are not revised when more information becomes
Controlling
available as the project progresses.

The theory of project management is not put into practice.

PM Skills The incorrect methodology is used.
Project manager's lack of knowledge and experience.

Sponsorship Lack of active sponsorship.

Communications are poor.

Communication
Lack of end-user involvement.

Quality Testing and/or inspections are poorly done.

Risk High level of risk.

Technology Use of technology that is not proven.

Failure to deal with political battles in the organisation.

Politics
Strong resistance towards change.

Table 4: Reasons for project failure

Another reason for project failure could be the culture of the project performing organisation. Middle and top
management in organisations with programmes and portfolios of projects do not always understand project
management, and take the wrong approach, preferring to command and control them. Changing attitudes and
culture can take a long time.

7.4 Role of Professionalisation

Despite the growth of project management as a profession, with more and more certified practitioners, it is not
clear that project managers are becoming better. Even the construction industry, which is a more mature user of
project management than the renewable energies industry, struggles to deliver successful projects more than 30
% of the time [26]. Merely having knowledge based credentials does not seem to guarantee improved success
rates. Therefore, some organisations are starting to move to the next level in the evolution of professional project
management, which is independently evaluated, competency based credentialing [26].

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8 Multi Projects

Projects do not necessarily exist in isolation but may form part of a larger programme or portfolio carried out
under the sponsorship of an organisation. A programme is a set of related projects managed in a coordinated
way to obtain benefits and control not available from managing them individually, e.g. NASA's space programme.
A portfolio is a group of projects and programmes which may not necessarily be interdependent or directly
related [2]. Portfolio and programme management must be based on the real strategic goals of the organisation.
Multiple projects often compete for resources within an organisation.

The more projects an organisation runs simultaneously, the more there is a need for organisational consistency
and implementation of a common approach to project management across the entire organisation. Many
organisations achieve this centralised and coordinated management of projects through use of an organisational
body commonly known as a project management office (PMO). The functions of a PMO include:

Administrative support - maintain schedules, budgets, time sheets.

Consulting and mentoring - consult within organisation on an as-needed basis.
Methods and standards - software support tools, project management methodology, project selection
processes.
Training - curriculum development, identify vendors, provide training.
Project managers - maintain a pool of project managers, offer career development opportunities.

Exercises

Question 1:

Question 2:

Question 3:

Question 4:

Question 5:

Summary

A project is a unique set of activities, using a limited allocation of resources over a limited period of time
to produce an outcome. Projects are always constrained in scope, schedule, budget and quality.

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 Organisations do projects since they are the best way to respond to a rapidly changing business
environment and provide a means to make better use of limited resources, manage risks and create
better quality results. Projects are part of a programme of related projects or just one of many unrelated
projects in an organisation's portfolio.

Projects can be categorised by considering many types of attributes, such as size, risk or complexity.
The complexity of a project will dictate the required competencies of the project manager.

Projects are performed by a supplier for a customer. The customer and supplier could be anything from
being the same person to forming a complex consortium of organisations.

The organisational forms in which projects take place range from the traditional functional organisation
with its effective command and control structures to the fast responding projectised organisation. The
matrix form attempts to combine the advantages of the functional and projectised forms.

Projects fail when they don't deliver according to the plan. This is may be either due to the plan being
wrong or a failure of the project team to perform.

Multiprojects need a consistent superior organisational structure (PMO - Project Management Office)
for the purpose of coordinating various projects.

References

[1] Weaver P.

The Origins of Modern Project Management, 2007.

http://www.mosaicprojects.com.au/PDF_Papers/P050_Origins_of_Modern_PM.pdf

[2]

A Guide to the Project Management Body of Knowledge, 3rd edition, PMI , Newtown Square, Pennsylvania,
USA, 2004.

[3]

APM Body of Knowledge, 5th edition, Association for Project Management , High Wycombe, UK, 2006

Managing Successful Projects with PRINCE2, 4th edition

[5]

ISO 10006 - Guidelines for Quality Management in Projects, International Organisation for Standardization,
2003.

[6]

Project Cycle Management Guidelines, European Commission, Europe Aid Cooperation Office, Brussels, 2004

[7] Westney R.

Risk Management: Maximizing the Probability of Success, in Project Management for Business
Professionals, edited by Joan Knutson, Wiley, NY, 2001.

[8]

IPMA Competence Baseline Version 3.0, 2006

[9]

Triangles, Sex and Simplicity, 2003

http://www.maxwideman.com/musings/irontriangle.htm

[10]

Those Sexy Triangles Again, 2004.

http://www.maxwideman.com/musings/triangles.htm

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 [11]

PMBOK® Guide, Third Edition - Is more really better? 2005,

http://www.maxwideman.com/papers/pmbok3/intro.htm

[12] Brooks F.

The Mythical Man-Month, , 2nd edition, Addison-Wesley, 1995.

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