1.0 Introduction, project management overview 1.

1 General view of a project

The Project Management Institute defines a project as A temporary endeavor undertaken to create a unique product or service. Projects vary widely in size and type. One characteristic that project have in common is multidisciplinary, which is complex, and composed of many interconnected elements and requiring input from groups outside the project. Using multidisciplinary teams involves dealing with conflict. Project does not exist in isolation and they are usually parts of larger entity or program. Project is actually subdivisions of programs, and can be further divided into subtask, allowing it to be viewed at various level of detail. In conclusion, projects are formed to fix the responsibility and authority for the achievement of an organization goal on an individual or small group when the job does not clearly fall within the definition of routine work.

1.2 Project management vs general management

General management Based on good planning

Based on modifications of previous budgets

Budget

Various things are done is set when the production line is designed Not altered when new models produced

Sequence

Take place within

Characteristic

Project management Based on more carefully detailed and project success dependent on such planning. Newly created for each project and often cover several budget periods in the future Has schedule of its own Previous project might be used as rough template but specific schedule will be determined by the time required to achieve goal Need technical

well-defined structure of divisions, departments, etc. Rarely crossing boundary On site Have authority to use resources

Management Resources

knowledge of info and special skill almost always requires departmental lines be crossed. Might be across the globe Little legitimate authority requires the project manager to be skilled at winwin negotiation.

1.3 Project performance target and goals of a project Projects are measured by three criteria, which are time, budget and satisfaction of client. Client is the one who will decide what capabilities are required of the projects deliverables. Every project will face uncertainty. Thus, PM spends great deal of time adopting unpredicted change, which consists of to trade off one objective for another. Projects must also have some flexibility to tackle the uncertainty.

1.3.1 The life cycles of projects A project life cycle measures project completion as a function of either time and resources Life cycle is essential due to the PMs managerial focus subtly shifts at different stages of the cycle. During early stage, PM ensure that the project plan really reflects the wishes of the client as well as the abilities of the team and aligned with goal. During at implementation stage, PM ensure that the project are on budget and more importantly, on schedule. There are two life cycles, which is S-shaped and J-shaped. This will helps the PM to focus attention on appropriate matters to ensure successful project completion.

1.4 Selecting projects

Project selection is the process evaluating individual projects of groups of projects and then choosing to implement a set of them so that the objectives of the parent organization are achieved.

Before the project begins, it will be selected by a few criteria: o Profitability of the project o Mandate or law, o Ability to carry out the project o Competency which consistent with firms strategic plan o Capacity to deliver project on time o In case of RnD projects, is the project economically successful or not. There are two method on selecting projects: o Nonnumeric Selection Methods The sacred cow- involves the senior executive casually suggests potential product that the organization might offer to its customers. The operating/competitive necessity- selects any project that is necessary for continued operation of a group, facility or the firm itself Comparative benefits- arranging a set of potential projects into a rank order set. o Numeric Selection Methods Financial assessment methods- select projects on the basis of their expected economic value to the firm. The annual cash inflows and outflows are collected and discounted to their net present value using the organizations required rate of return Financial options and opportunity costs- Based on the financial options approach to valuing prospective capital investment opportunities. Occasionally, organization will approve project that forecast to lose money for the sake of competency, acquire knowledge and opportunity in a long term. Scoring methods- developed to overcome the disadvantages of simple financial profitability methods by using unweighted 0-1 factor method.