Transcript Project Management 3e.

Project Management
THE MANAGERIAL PROCESS
Haeryip Sihombing & Nor Akramin
Universiti Teknikal Malaysia Melaka (UTeM)
BMFP 4542
1
An Overview of Project Management .
What is a Project?
A project is an interrelated set of activities
with a definite starting and ending point,
which result in a unique outcome for a
specific allocation of resources.
• Project Defined:
A complex, non-routine, one-time effort limited by
time, budget, resources, and performance
specifications designed to meet customer needs.
What is a Project?
• Major Characteristics of a Project
–Has an established objective.
–Has a defined life span with a beginning and an
end.
–Requires across-the-organizational participation.
–Involves doing something never been done before.
–Has specific time, cost, and performance
requirements.
What is a Project?
• Three main goals of any project:
– Complete the project on time or earlier.
– Do not exceed the budget.
– Meet the specification to the satisfaction of the
customer.
 Needs the skills of multiple professions and organizations
 Requiring new combination of skills and resource in the
project process
 Differences will arise with each replication, especially due
to uncertainties. So can change the characteristic and
countermeasures.
Programs versus Projects
• Program Defined
–A series of coordinated, related, multiple projects
that continue over an extended time and are
intended to achieve a goal.
–A higher level group of projects targeted at a
common goal.
–Example:
• Project: completion of a required course in project
management.
• Program: completion of all courses required for a business
major.
Comparison of Routine Work with Projects
Routine, Repetitive Work
Projects
Taking class notes
Writing a term paper
Daily entering sales receipts into
the accounting ledger
Setting up a sales kiosk for a
professional accounting meeting
Responding to a supply-chain
request
Developing a supply-chain
information system
Practicing scales on the piano
Writing a new piano piece
Routine manufacture of an Apple
iPod
Designing an iPod that is
approximately 2 X 4 inches,
interfaces with PC, and stores
10,000 songs
Attaching tags on a manufactured
product
Wire-tag projects for GE and
Wal-Mart
Project Management
• Project management is a systemized, phased
approach to defining, organizing, planning,
monitoring, and controlling projects.
• A collection of projects is called a program,
which is an interdependent set of projects
with a common strategic purpose.
• A cross-functional effort: Even though a
project may be under the overall purview of a
single department, other departments likely
should be involved.
Project Management Questions
• What activities are required to complete a project
and in what sequence?
• When should each activity be scheduled to begin
and end?
• Which activities are critical to completing the
project on time?
• What is the probability of meeting the project
completion due date?
• How should resources be allocated to activities?
The Nature of Project Management
• Characteristics of Projects: purpose, life cycle,
interdependencies, uniqueness, and conflict.
• Project Management Process: planning (work
breakdown structure), scheduling, and controlling.
• Selecting the Project Manager: credibility, sensitivity,
ability to handle stress, and leadership.
• Building the Project Team: Forming, Storming,
Norming, and Performing.
• Principles of Effective Project Management: direct
people individually and as a team, reinforce excitement,
keep everyone informed, manage healthy conflict,
empower team, encourage risk taking and creativity.
• Project Metrics: Cost, Time, Performance
Project Life Cycle
The Challenge of Project Management
• The Project Manager
–Manages temporary, non-repetitive activities and
frequently acts independently of the formal
organization.
• Marshals resources for the project.
• Is linked directly to the customer interface.
• Provides direction, coordination, and integration to the project
team.
• Is responsible for performance and success of the project.
–Must induce the right people at the right time to
address the right issues and make the right
decisions.
Project Team
• Selecting the right project manager is critical
and specific skills are needed.
 Facilitator: Able to resolve conflicts, have leadership
skills and a systems view.
 Communicator: Ability to keep senior management
informed, communicate progress, and work with team
members.
 Decision Maker: Able to organize members and make
difficult decisions.
• Team members need to be technically
competent, dedicated, and able to work well
with other team members.
The Importance of Project Management
• Factors leading to the increased use of project
management:
– Compression of the product life cycle
– Global competition
– Knowledge explosion
– Corporate downsizing
– Increased customer focus
– Rapid development of Third World and
closed economies
– Small projects that represent big problems
Integrated Project Management Systems
• Problems resulting from the use of piecemeal
project management systems:
–Do not tie together the overall strategies of the
firm.
–Fail to prioritize selection of projects by their
importance of their contribution to the firm.
–Are not integrated throughout the project life
cycle.
–Do not match project planning and controls with
organizational culture to make appropriate
adjustments in support of project endeavors.
Integrated
Management of
Projects
The Technical and
Sociocultural
Dimensions
of the Project
Management
Process
Having a Nice Break
Next to
Organization Strategy and Project Selection