Introduction
Project Management for Business,
Engineering, and Technology
Prepared by
John Nicholas, Ph.D.
Loyola University Chicago
IENG 466/566
Session One – 24 Jan 2011
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Introduction to the Course
Introduction to Project Management
Project Management Philosophy
Systems Approach
Great Pyriamid of Cheops
(2,500 B.C.)
4
2,300,000 Stone Blocks
4
40 Stories
4
Accuracy of 0.04 inch
4
13 acres level within 1 inch
4
100,000 laborers
40,000 skilled masons
150,000 women & children
Evidence of projects is
everywhere…
From: blog.lib.umn.edu/muwah005/architecture/
From: www.educ.uvic.ca/.../438/CHINA/CHINA-WALL.HTML
…and in the news. Recent
examples:
• Millennium Park, Chicago
– Ground breaking targets, 1998:
• Total cost: $150 million
• Gehry band shell: $10.8 million
• Completion: 2000 (millennium!)
– Actual
• Total Cost: $475 million
• Gehry band shell: $60.3 million
• Completion date: Summer 2004
Recent
examples
• Boston Big Dig
–
Cost estimate for total project:
From: www.cegltd.com/story.asp?story=8751&headline=...
Circa 1989, seeking federal funding $ 2.5B
–
–
–
1991, ground-breaking
1997
Summer 2004, 92% complete
$5B
$10.8 B
$14.6 B
–
Projected at completion
$ 20 B??
From: www.roadtraffic-technology.com/.../big_dig1.html
Performance of IT Projects
• 2003 “Chaos” Report, Standish Consulting
Group
– Major IT projects that fail, 66%
– Average cost overrun, 43%
– Projects with schedule overrun, 82%
– Required features/functions not included in
released system, 48%
Performance (cont’d)
• Criteria for Project “Failure” or “Overrun”
– >20% over budget, and
– >20% late, and
– >20% of business requirements not met
Why Do Projects Fail or Suffer
Overruns?
• Typical reasons
– Weather
– Inadequate requirements definition
– Insufficient resources
– Changing priorities of customer or
management
– Intractable technical problems
– Resistance from stakeholders
– Wrong project for the stated needs
– Inadequate tracking and control
– Inexperienced project manager and/or team
Project Failure, Sources and
Solutions
Internal to Project
Reasons
External to Project
Organizational
Environmental
Poor definition
Inadequate resources
Weather
Poor tracking
Changing priorities
Competitors
Technical barriers
Wrong project
Legal barriers
Project Failure, Sources and
Solutions
Internal to Project
External to Project
Reasons
Organizational
Environmental
Poor definition
Inadequate resources
Weather
Poor tracking
Changing priorities
Competitors
Technical barriers
Wrong project
Legal barriers
Planning / control
Portfolio mgt
Stakeholder mgt
Risk mgt
Risk mgt
Risk mgt
Possible Solutions:
PMO
PROJECT MANAGEMENT!
What’s a “Project?”
• Goal-oriented
– Aims at a specific end result or deliverables
•
Somewhat unique
– Non-routine
• Time- and resource-constrained
– Temporary; has target completion date and
target cost
What’s a “Project?” (cont’d)
Mulberry harbor example
• Cross-functional
– Cross-disciplinary
– Cross-organizational
• Somewhat unfamiliar and risky
– Involves something new or different
• Something is at stake
From: history.sandiego.edu/gen/WW2Index/picindex5.html
• Follows logical sequence or progression of phases or
stages
What is “Project Management?”
Simple Definition
• Management to accomplish project goals.
What is “Project Management?”
Longer Definition
Management to
• Define and execute everything necessary
to complete a complex system of tasks
• Achieve project end results that might be
unique and unfamiliar
• Do it
– by target completion date
– with constrained resources
– with an organization that is cross-functional
and newly-formed
Project Goals
Cost
Time
Ref: M. Rosenau, Successful Project Management, LL Pubs., 1981
Key Elements of Project
Management:
Project
Team
Project
Manager
Project
Methodology
PMBOK, Nine Areas of
Knowledge
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•
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•
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Project Integration Management
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project Human Resource Management
Project Communications Management
Project Risk Management
Project Procurement Management
Book chapters
PMBOK Knowledge Areas
Key:
P = PMBOK Knowledge Area is a major focus
of this chapter
* = PMBOK Knowledge Area is addressed in
this chapter
Introd
uction
Project
Life
Cycle
and
Organi
zation
Project
Manage
ment
Process
Introduction
P
*
*
Chapter 1; What is Project Management?
P
Project
Scope
Manage
ment
*
*
Project
Time
Manag
ement
*
Chapter 3: System Development Cycle and Project
and Conception
P
Chapter 4 Project and System Definition
*
Chapter 5: Planning Fundamentals
*
*
*
*
*
P
*
P
Chapter 8: Cost Estimating and Budgeting
*
Chapter 9: Project Quality Management
*
Chapter 10: Project Risk Management
*
Chapter 11: Project Execution and Control
*
*
P
P
*
*
P
Chapter 15: Project Leadership and Teamwork
*
*
P
Chapter 18: International Project Management
*
P
*
P
*
*
*
*
P
*
*
Chapter 17: Project Selection and Portfolio
Management
P
P
*
*
*
*
Chapter 14: Project Roles, Responsibilities, Authority
Chapter 16: Managing Project Management
Project
Procur
ement
Manag
ement
*
Chapter 7: Advanced Time Planning
Chapter 13: Project Organizations: Differentiation and
Integration
:Project
Risk
Manag
ement
P
P
*
Project
Quality
Manag
ement
Project
Comm
unicati
ons
Manag
ement
*
*
Chapter 12: Project Evaluation, Communication, and
Closeout
Project
Cost
Manag
ement
Project
Human
Resour
ce
Manag
ement
*
Chapter 2: The Systems Approach and Systems
Engineering
Chapter 6: Time Planning and Project Networks
Project
Integrat
ion
Manag
ement
*
*
*
*
*
*
*
*
*
*
*
*
Management Functions
Planning
Purpose or Goal
Control
Organizing
Change
Leadership
Characteristics of Projects
• Goal-oriented
– Aims at a specific end result or deliverables
•
Somewhat unique
– Non-routine
•
Time- and resource-constrained
– Temporary; has target completion date and target cost
Characteristics of Projects

Cross-functional



Somewhat unfamiliar and risky



Cross-disciplinary
Cross-organizational
Involves something new or different
Something is at stake
Follows logical sequence or progression of phases or
stages
What is “Project Management?”
Simple Definition
• Management to accomplish project goals.
What is “Project Management?”
Longer Definition
Management to
• Define and execute everything necessary to
complete a complex system of tasks
• Achieve project end results that might be
unique and unfamiliar
• And do it
– by target completion date
– with constrained resources
– with an organization that is cross-functional
and newly-formed
Characteristics of Projects
1. A single person, the project manager, heads the
project organization. The project organization
reflects the cross-functional, goal-oriented, temporary
nature of the project.
2. The project manager is the person who brings
together all efforts to meet project objectives.
3. Project requires a variety of skills and resources, and
is performed by people from different functional
areas or by outside contractors.
4. The project manager integrates people from different
areas and disciplines in the project.
Characteristics of Projects
5. Project manager negotiates with functional managers
for personnel. Functional managers responsible for
work tasks and personnel in the project; project
manager responsible for integrating tasks.
6. Project manager focuses on delivering product or
service according to time, cost, and technical
requirements. Functional managers maintain pool of
resources to support organizational goals; sometimes
conflicts arise over allocation of resources to projects.
7. A project might have two chains-of-command, one
functional and one project; workers might report to both
a project manager and a functional manager.
Characteristics of Projects
(cont’d)
8. Decision making, accountability, outcomes, and rewards
are shared among members of the project team and
supporting functional units.
9. Each project organization is temporary. When project
ends, the project organization disbands and people
return to their functional or subcontracting units, or are
reassigned to new projects.
10. Project management sets into motion work in numerous
support functions such as HR, accounting, procurement,
and IT.
Project Management in History
The role*of the project manager has
existed for a long time. Two
examples:
•The title of project manager is recent and became common starting
in the 1950’s.
1413 Santa Maria del Fore, Florence
Filippo Brunelleschi
Santa Maria del Fore
Santa Maria del Fore
Brunelleschi’s mandate
To “provide, arrange,
compose or cause to have
arranged and composed,
all and everything
necessary and desirable
for the building,
continuing, and
completing the dome.”
Circa 1413
Advanced engine development at
Pratt & Whitney,1939
1939 internal memo to establish new
role, the “project engineer”
Project Engineers should in effect be Chief Engineers
for their particular project
…they should then have at all times a general
knowledge of the entire company situation
concerning their project and…their thinking will be
guided by this picture…
[They] should appreciate the functioning of each of
the subdivision [of the project, including]
1. Product (engineering)
2. Sales
3. Manufacturing
4. Quality
5. Service
Recent History of Project
Management
1958
Publication of many articles on
project management
 1961 Systems Managers at IBM
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1969 PMI founded by 5 volunteers
1992 5000 members
2004 142,000 members
2005 over 170,000 members worldwide in
120 countries
Where Do You Need Project
Management?
Answer: Situations where the work …
• Is Unfamiliar
The job is different from the ordinary and routine. Requires
that different things be done, the same things be done
differently, or both.
• Requires Greater Effort
The job requires more resources (people, capital,
equipment, etc.) than are normally employed by the
department or organization.
• Is in a Changing Environment
The industry or environment involves high innovation, high
competition, rapid product change, shifting markets.
Where Do You Need Project
Management?
Answer: Situations where the work …
• Requires a Multifunctional Effort
The job requires lateral relationships between the areas
to coordinate and expedite work and reconcile conflicts.
• Could Impact the Reputation of the Organization or
Other Stakeholders
Failure to satisfactorily complete the work could result in
financial ruin, loss of market share, damaged reputation,
loss of future contracts, or other problems for the
stakeholders or larger environment.
Different Forms of Project Management
Basic Project Management
• Most common project approach
• Project manager has authority to plan, direct, organize,
and control the project from start to finish.
• PM and functional managers are on the same
organizational level.
• Implemented in two widely used forms—pure project and
matrix.
– In pure project, the project is a complete, selfcontained organization
– In matrix, the project is created from resources
borrowed from the
functional units.
Different Forms of Project Management
Program Management
• Similarity between programs and projects
– both defined in terms of goals or objectives about what
must be accomplished
– both emphasize time period over which goals or
objectives are to be pursued
– both require plans, budgets, and schedules for
accomplishing specific goals.
• Differences between programs and projects
– Program extends over a longer time horizon
– It consists of several parallel or sequential work efforts or
projects coordinated to meet a program goal.
– Projects within a program share a common goal and
resources, and often are interdependent.
Different Forms of Project Management
(cont’d)
New Venture Management
• Used for generating new products or markets.
• Team is specially created to find products/markets that fit
the organization’s specialized skills, capabilities, and
resources.
• After defining a product, the team may go on to design
and develop it, then determine means for producing,
marketing, and distributing it.
• Similarities between project groups and venture groups
– Focus on a single unifying goal.
– Multidisciplinary, with experts and managers from
various functional areas
– Action-oriented and dedicated to change.
– Temporary.
Different Forms of Project Management
(cont’d)
Product Management
• A single person has authority to oversee all aspects
of a product’s production scheduling, inventory,
distribution, and sales
• Like the project manager, the product manager
communicates directly with all levels and functions
within and outside the organization
• The product manager coordinates functional units
so that the total effort is directed at the
accomplishment of product goals.
Different Forms of Project Management
(cont’d)
Ad Hoc Committees and Task Forces
• For some projects of short or medium duration, a
temporary team is assembled with a project leader.
• The team is an ad hoc committee called a task force or
interdepartmental committee.
• The leader and members are selected by (and the leader
reports directly to) the person responsible for the
project—a functional manager, vice president, or CEO.
• The leader expedites and coordinates efforts and may
have authority to direct project tasks to certain
individuals or units, or to contract work out.
Project Management
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Project involves a single definable purpose
Cuts across organizational lines
Unique, one time activity
Unfamiliar
Temporary activity
Process of working to achieve a goal
– Phases constitute Life Cycle
Uncertainty in
Cost, Time, Performance
Topology of Projects
Space Station
(US, Canada
Europe, Japan)
Resource
(gas, oil)
Exploration
Company
Motion
Moves
Pictures
Family
Term
Moves
Papers
Market Surveys
Individual
Manhattan
Group
Trans-English
Channel
Panama
Canal
Ships
Skyscrapers Interstates
Organization
Multiorg.
Cost - Time (Labor Hours)
Complexity
Olympic
Games
Multination
Topology of Projects
Uncertainty in
Cost, Time, Performance
Basic Research
Applied Research
Individual
Group
Organization
Multiorg.
Cost - Time (Labor Hours)
Complexity
Multination
Project Organization
Top
Management
Accounting
Task A
Projec t
One
Task B
Task C
Engineering
Manufactur.
Procurement
Review
How is project management
different from functional management?
Review
• How is project management different from
functional management?
Functional organizations are efficient in
stable environments, they tend to be rigid
and, thus, unsuitable for the unstable and
dynamic environments that characterize
projects.
Project Mgmt. Characteristics
• Project manager operates project
independently of normal chain-ofcommand
• Project manager is focal point for all
efforts of project
• Work on project is performed by many
functional areas
• Project team responsible for integrating
people from different functional areas
Project Mgmt. Characteristics
• Project manager negotiates with
functional managers for support
• There will be conflict for resources
between project goals and functional
goals
• Project might have 2 chains-ofcommand
– vertical and functional
– horizontal and project
(fig. 1.5)
2-Chains of Command
Top
Management
Accounting
Task A
Projec t
One
Task B
Task C
Project
Two
Task D
Task E
Engineering
Manufactur.
Procurement
Project Mgmt. Characteristics
• Project organization is temporary
• Functional units are permanent
• Projects originate at differing locations
within organization
– product development from marketing
– technology applications from R&D
• Project manager starts other support
functions for project
Project Management Criteria
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•
•
•
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Magnitude of Effort
Unfamiliarity
Changing Environment
Interrelatedness
Reputation of Organization
Ref: Cleland & King, Systens Analysis & Project Management, 259.
Forms of Project Mgmt.
•
•
•
•
•
Project Management
Program Management
New Venture Management
Product Management
Task Forces
Project Environments
• Commercial Project Management
• Government/Nonprofit Project
Management
• Military Project Management
Review
• List the main characteristics of projects.
How do these features distinguish projects
from other nonproject activities?
Review
• What are the characteristics of project
management? Contrast these to
functional and other types of nonproject
management.
Review
• What are the five criteria that Cleland and
King suggest for determining when to use
project management? From these briefly
describe how a manager should know
when project management is appropriate
for the task.
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