Modern Project Management

Chapter 1
Project?
It is temporary work system constituted by
team within or across organizations to
accomplish particular tasks under time and
budget constraints
A complex, non-routine, one-time effort
limited by time, budget, resources, and
performance specifications designed to meet
customer needs.

Characteristics of Project
Consists of temporary activities that have
predetermined start and end dates.
Used for one off, non-repetitive items
Uses restricted time & budget.
It has a single goal or a set of goals.
It uses skills and talents from multiple
professions and organizations.
Examples
A market demand (e.g., a consumer product
company authorizing a project to develop a
new fruit drink for kids with less sugar in
response to an increased health awareness)
A business need (e.g., a publisher authorising
a project to write a new book to increase its
revenues)
Examples
A customer request (e.g., an amusement park
authorizing a company to develop a new roller
coaster)
A technological advance (e.g., an electronics
firm authorizing a new project to develop a
faster, cheaper, and smaller net book)
A legal requirement (e.g., U.S. federal
government authorizes a project to establish
laws for controlling the home loan system)
Examples
A social need (e.g., a non-governmental
organization authorizing a project to raise the
awareness of donating blood)
Project Management
Project management is the application of
knowledge, skills and techniques to execute
projects effectively and efficiently. Its a strategic
competency for organizations, enabling them to
tie project results to business goals and thus,
better compete in their markets.
Defining
Planning
Executing
Closing

Program
A group of related projects managed in a
coordinated way to obtain benefits and
control not available from managing them
individually.
Characteristics of Program
Deliverable with strategic intent
Significant change in organization
Longer in duration


Project vs. routine work
Project activities
Expand product line
Building a home
Installing new
machine in factory
Developing supply
chain information
system

Routine activities
General accounting
Customer service
Technical support
Continuous
production

Project Life Cycle
Importance of Project Management
Compression of product life cycle
Knowledge Explosion
Triple Bottom Line (Planet, people, Profit)
Corporate Downsizing
Increased Customer Focus
Project Management today-
Integrative approach
Integration (or centralization) of project
management provides senior management with:
An overview of all project management activities
A big picture of how organizational resources are used
A risk assessment of their portfolio of projects
A rough metric of the firms improvement in managing
projects relative to others in the industry
Linkages of senior management with actual project
execution management

Integrated Management of Project
Ensure projects
meet strategic
objectives
Proper utilization
of resources
Priority of
projects
Reducing waste
of resources
Major Functions of Portfolio
Management
Monitor aggregate resource levels and skills.
Balance projects in the portfolio in order to
represent a risk level appropriate to the
organization.
Improve communication among all stakeholders.
Create a total organization perspective that goes
beyond silo thinking.
Improve overall management of projects over
time
Aspects of Project Implementation
Discussion
Individually identify projects assigned in
previous terms. Were both socio-cultural and
technical elements factors in the success or
difficulties in the projects?
End of Chapter