Chapter 1 Project Management Concepts

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Chapter 1Project Management Concepts
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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

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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

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Real World Example

• Vignette Making Movies
• Musaffar 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 reach to complete his project
  effectively

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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.

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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

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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

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Constraints

• Scope
• Cost
• Schedule
• Customer satisfaction

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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.

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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.

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Project Life Cycle Phase 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).

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Project Life Cycle Phase 2

• 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).

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Project Life Cycle Phase 3

• The third phase is performing the project.
• Different types of resources are utilized
• Results in the accomplishment of the project
  objective
• Includes
• Detailed planning
• Implementation of the plan

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Project Life Cycle Phase 4

• The final phase is terminating the project.
• Perform close-out activities
• Evaluate performance
• Invite customer feedback

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The Project Management Process

• The project management process means planning the
  work and then working the plan.

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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.

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The Project Management Process (Cont.)

• Make a time estimate.
• Make a cost estimate.
• Calculate a project schedule and budget.
• RESULT BASELINE PLAN

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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.

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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

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• Dice.com
• Monster.com