Chapter 1

Project Management
Concepts
2 2
Learning Objectives
Definition of a project and its attributes
Key constraints within which a project
must be managed
How a project is born
Life of a project
Steps involved in the project
management process
Benefits of project management
3 3
Real World Example
Vignette: Project Management for Better Health
The Interior Health Authority (IHA) had two goals: to integrate over 100
independent financial applications into one system, and to consolidate and
standardize electronic health records
Executive support was established for both objectives and project teams
were formed
Projects were completed on time and under budget. They are being
geographically implemented
Results of both projects: cost savings, and higher user satisfaction
4
Real World Example
Vignette: Making Movies
Masaffar Ali, well-known Indian filmmaker, was in the process of
making Zooni in January 1989 when violence broke out where he
was filming
14 years later, he was able to resume filming when peace reached the
region
To finish his film, Ali needs to stay on schedule and within his budget.
A script breakdown is designed to consider tasks and factors that help
determine schedule and budget.
Use of a script breakdown, and open communication between assistant
director and production manager will help Ali complete his project
effectively

5
Project, Defined
A project is an endeavor to accomplish a specific
objective through a unique set of interrelated tasks
and the effective utilization of resources.
6
Attributes of a Project
Has a well-defined objective
Composed of a series of interdependent tasks
Utilizes various resources
Has a specific time frame
Has a customer
Involves a degree of uncertainty
7
Examples of Projects
Planning a wedding
Designing and implementing a computer system
Hosting a holiday party
Designing and producing a brochure
Executing an environmental clean-up of a
contaminated site
Holding a high school reunion
Performing a series of surgeries on an accident
victim
8
Constraints
Scope
Cost
Schedule
Customer satisfaction
9
Unforeseen Circumstances
Unforeseen circumstances may jeopardize
achievement of the project objective.
The challenge facing the project manager is to
prevent, anticipate, and/or overcome such
circumstances.
10
The Project Life Cycle
Projects are born when a need is identified by the
customer.
Project life cycles vary in length, from a few weeks
to several years.
Not all projects formally go through all four phases
of the project life cycle.
11
Phases of the Project Life
Cycle 1
The first phase involves the identification
of a need, problem, or opportunity.
The need and requirements are usually written by
the customer into a document called a request for
proposal (RFP).
The second phase is the development of
a proposed solution to the need or
problem.
This phase results in the submission
of a proposal.
The customer and the winning
contractor negotiate and sign a
contract (agreement).
12
Phases of the Project Life
Cycle 2
13
Phases of the Project Life
Cycle 3
The third phase is performing the project.
Different types of resources are utilized
Results in the accomplishment of the
project objective
14

Phases of the Project Life
Cycle 4
The final phase is terminating the
project.
Perform close-out activities
Evaluate performance
Invite customer feedback
15
The Project Management
Process
The project management process means planning the
work and then working the plan.
16
The Project Management
Process (Cont.)
Clearly define the project objective.
Divide and subdivide the project.
Define the specific activities that need
to be performed.
Graphically portray the activities in a
network diagram.
17
The Project Management
Process (Cont.)
Make a time estimate.
Make a cost estimate.
Calculate a project schedule and
budget.
18
Controlling Projects
Establish a baseline plan.
Monitor progress.
Measure actual progress and compare it to planned
progress.
Take corrective action if the project is behind
schedule, overrunning the budget, or not meeting
technical specifications.
19
Benefits of Project
Management
Satisfied customers
Additional business
Expansion of career opportunities
Satisfaction of being on a winning team
Improved knowledge and skills
When projects are successful, everybody WINS!
Case Study Discussion
Case #1 A Not for profit
organization
This case study involves a Board of
Directors meeting for a local not-for-profit
organization that collects, buys, and
distributes food for the needy. Their funds
are almost exhausted and the demand for
service is growing.

Case Study Discussion
Case #2 E-Commerce for a small
supermarket
This case study involves a small
supermarket in a rural town with a large
and growing elderly population. The
owners are discussing the possibility of
putting their operation on-line.