According to Jack R.

Meredith
Samuel J. Mantel, Jr.

CHAPTER 1
PROJECT MANAGEMENT IN OUR
CONTEMPORARY SOCIETY

Definition of a project
PMI has defined a project as A temporary
endeavor undertaken to create a unique
product or service
(Project Management Institute, 2004, p.5)

Importance:
It must be important enough in the eyes of senior management
Performance:
Project is complex enough that the subtasks require careful
coordination and control as far as time, cost, precedence and
performance.

Why Project Management

The basic purpose for initiating a project is to
accomplish specific goals.
PM need to reach project goals

The Project Life Cycle

Most projects go through similar stages.

RISKS

CHAPTER 2
PROJECT INITIATION
IMPLEMENTING STRATEGY THROUGH
PROJECTS

IN GENERAL
Three particularly common problems in organizations trying to
manage multiple projects are:

Project selection is the process of evaluating individual

projects or groups of projects, and then choosing to
implement some set of them so that the objectives of
the parent organization will be achieved.
When a firm chooses a project selection model the
following criteria are the most Important. (Souder, 1973)

Realism (realities of firms limitations)

Capability (model should deal with multiple situations)
Flexibility (model should give valid results in any changes.. VAT, etc)
Ease of Use
Cost
Easy Computerization

There are two basic types of project selection

models.
Numeric (use numbers as inputs)
NonNumeric (do not use numbers as inputs)
Many organizations use models that are
combinations of the two above.
SOMETHING IMPORTANT!!!!!!
Models do not make decisions People do.
All models are only partial representations of
the reality.

Important inputs to this process are organizational goals

and strategies by using some formal analytical method
such as SWOT analysis.
The steps in this process generally follow those
described in Longman, Sandahl, and Speir (1999) and Englund and
Graham (2000).

Establish a Project Council Strategic Directions

Identify Project Categories & Criteria
Collect Project Data
Assess Resource Availability
Reduce the Project and Criteria Set
Prioritize the Projects within Categories
Select the Projects to Be Funded
Implement The Process

The Set of Documents Submitted for

Evaluation is Called the Project Proposal.
The following Issues should be answered
Which projects should be bid on?
How should the proposal be organized and
staffed?
How much should be spent on preparing
proposals?
How should the bid prices be set?

CHAPTER 3
MANAGING PROJECTS: THE ROLE OF
THE PM

Acquiring Adequate Resources

Acquiring and Motivating Personnel
Dealing with Obstacles
Making Project Goal Trade-offs
Failure and the Risk and Fear of Failure
Breadth of Communication
Negotiation

(trade-off: Allowing one aspect to get worse in return for

another aspect getting better)

A strong technical background

A hard-nosed manager
A mature individual
Someone who is currently available
Someone on good terms with senior executives
A person who can keep the project team happy
One who has worked in several different
departments
A person who can walk on the waters
Leadership and Management Style
Ability to handle stress

Socioeconomic Environment
Legal Environment
The business Cycle as an environment
Technological Environment

CHAPTER 4
ORGANIZING PROJECTS
There are various organizational structures that can be
used for projects
The project as part of the functional Organization
Pure Project Organization
The Matrix Organization
A useful procedure for selecting an organizational form for
a project is:
Identify the specific outcomes desired
Determine the key tasks
Sequence the key tasks
Determine project subsystems
Identify project characteristics
Consider all above

CHAPTER 5
THE PROCESS OF PLANNING PROJECTS
PROJECT PLAN ELEMENTS
Overview
Objectives
General Approach
Contractual Aspects
Schedules
Resources
Personnel
Risk Management Plans
Evaluation Methods

The planning process is divided into nine

segments
Concept Evaluation
Requirements Identification
Design
Implementation
Test
Integration
Validation
Customer Test and Evaluation
Operations and Maintenance

Systems integration concerns the smooth

coordination of project systems in terms of
cost, performance and effectiveness.
The hierarchical approach to project planning
is most appropriate and can be aided by a
tree diagram of project subsets, called
Gozinto chart, and a Work Breakdown
Structure (WBS). The WBS relates the details
of each subtask to its task and provides the
final basis for the project budget, schedule,
personnel and control.

CHAPTER 6
RESOLVING CONFLICTS THROUGH NEGOTIATION

Negotiation is the tool to resolve project

conflicts
Some main points
Negotiation within the firm should be
directed at obtaining the best outcome
for the organization, not winning..
Project negotiation requirements are
that conflicts must be settled without
permanent damage, the methodology
should be honest and the solution must
satisfy both individuals and the
organizations needs..

CHAPTER 7
COST ESTIMATION AND THE BUDGETING PROCESS
The intent of a budget is to communicate
organizational policy concerning the organizations
goals and priorities
There are a number of common budgeting methods:
top-down, bottom-up, the program budget.
Top-down: A budgeting method that begins
with top managers estimates of the resources
needed for the project.
Bottom-up: A budgeting method that with
those who will be doing the tasks estimating the
resources needed.

CHAPTER 7
COST ESTIMATION AND THE BUDGETING PROCESS
It is very helpful in estimating costs to identify the
level of resource need, when it will be needed, who
the contact is and its availability.
It is common for organizations to fund projects
whose returns cover direct.. (ROI?)
We should also consider inflation, differential
changes, waste, personnel replacement costs and
some unexpected difficulties.
You should also learn about Cost Categories (Direct
cost, General cost, Fixed cost and Overhead cost)

CHAPTER 8
The Function of Scheduling: Creating Timetables

Scheduling is important to projects because

of complex coordination problems
The network approach to scheduling offers a
number of specific advantages of special
value for projects
Gantt Charts are really useful
GERT technique is also useful

CHAPTER 9
Allocating Resources
CRITICAL PATH METHOD (CPM) is a network
constructed in the same manner as PERT but it also
considers the possibility of adding resources to tasks
to shorten their duration.
The resource allocation problem is concerned with
determining the best trade-offs between available
resources, including time, throughout the project
duration
You should also learn the two basic approaches to
addressing the resources allocation problem
(heuristic optimizing methods)

CHAPTER 10
Managing Projects through Information Systems
It is important that the planning-monitoringcontrolling cycle be a closed loop cycle based on the
same structure as the parent system.
The data collected are usually either frequency
counts, numbers, subjective numeric ratings,
indicators, or verbal measures
Project reports should include an amount of detail
appropriate to the target level of management with a
frequency appropriate to the need for control.
A great number of SOFTWARE exists for
computerized PMISs.

CHAPTER 11
Controlling Projects: The Management Process
Control is directed to Performance, Cost and Time
Control systems have a close relationship to
motivation and should be well balanced
The most irritating problem that a PM faces is the
control of CHANGE.

CHAPTER 12
Auditing Projects
A major concluding step in the termination of the
project is the evaluation of the project process and
results known as an AUDIT
The Audit report should contain at least the current
status of the project, the expected future status, the
status of crucial tasks, a risk assessment and any
project limitations.
The difficult responsibility of the auditor is to be
honest in presenting the audit results

CHAPTER 13
Terminating Projects
Most project fail because of one or more of the
following reasons:
Inappropriate use of the project form
Insufficient top-management support
Naming the wrong PM
Poor planning
The Project Final Report should Include:
Project Performance Comments Administrative
Comments Organizational structure comments
Personnel suggestions

For more information please read:

Project Management A Managerial
Approach Sixth Edition
Jack R. Meredith
Samuel J. Mantel, Jr.