PROJECT MANAGEMENT
Prof. Raza Khan
Project Management
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Introduction to Project Management Contd.
What is a Project?
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A project is best defined as one time occurrence with a
well defined beginning and agreed upon deliverable.
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A project is a complex, nonroutine, one time effort
limited by time, budget, resources, and performance
specifications designed to meet customer needs. – Gray
Larson, 2nd Ed.
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A project is a temporary endeavor undertaken to create
a unique product, service, or result. – PMBOK®
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Introduction to Project Management Contd.
Major Project Characteristics
Temporary
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Unique
Performance
Definite beginning and a definite end
Duration flexible but finite
Obtain objective (what, when, and how much) and close or
End
terminate
Team of several diverse professionals - disbanded on completion
Lasting result
Unique
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Start
Objective (product, service, or result)
Time, cost, and performance requirements
E.g. seemingly similar construction projects have different owner,
different design, different location, different contractor
Progressive Elaboration
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Proceeding in steps
Continuing steadily by increments
Word of caution!
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Introduction to Project Management Contd.
Program Vs. Project
Program Defined
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A series of coordinated, related, multiple projects that continue
over an extended time and are intended to achieve a goal.
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A higher level group of projects targeted at a common goal.
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Example:
Prof. Raza Khan
Project Management
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Project: completion of a required course in project management.
Program: completion of all courses required for a business major.
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Introduction to Project Management Contd.
Operations vs. Projects.
Overlaps
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Differences
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Performed by People
Constrained by Limited Resources
Planned, Executed, Controlled
Ongoing and Repetitive V/S Temporary and Unique
Projects end while operations sustain the business by forming new
set of objectives and the work continues
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Introduction to Project Management Contd.
Routine Work vs. 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
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
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Project Management
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Introduction to Project Management Contd.
Project Need
Projects are means to achieving strategic goals of
an organization. They can result from:
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Prof. Raza Khan
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A market demand
An organizational need
Customer request
A technological advance
A legal requirement
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Introduction to Project Management Contd.
Project Examples
Some examples of types of projects:
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Prof. Raza Khan
Project Management
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Developing a new product or service
Designing a new transportation vehicle
Constructing a building or facility
Effecting a change in structure, staffing or style of an
organization
Developing or acquiring a new or modified information
system
Building a water system for a community
Running a campaign for political office
Implementing a new business procedure or process
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Introduction to Project Management Contd.
Characteristics of a Successful Project
High quality projects deliver the required product:
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Primary
On time
Within budget
Within Scope
Secondary
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Follow on work from this customer
Using the customer name as reference
With minimum or mutually agreed upon changes
Lessons learnt
Team developed
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Reusable parts identified for future use
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Introduction to Project Management Contd.
Why do Projects Fail?
List reasons for project failure:
Standish Group Survey
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of 26,000 companies in
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2002 shows only 31%
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projects were successful
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while an astounding 25%
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failed!
Remaining
44%
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were challenged.
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Project Management
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Introduction to Project Management Contd.
Project Management Defined
“Project management is the application of knowledge,
skills, tools and techniques to project activities to meet
project requirements.” - PMBOK®
“Project Management is the process: partly management
science and partly art: of defining an objective or goal, for
a one time undertaking and planning (or re-planning) the
work to accomplish that goal, organizing resources and,
monitoring progress, and completing all the work to
achieve the performance goal in time and within
budget…”
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Introduction to Project Management Contd.
The Triple Constraint
Managing projects requires:
Knowledge of key areas and their integration
Skills for managing all elements
Tools and techniques to support processes
Requires a balance between
Time, cost, quality and scope
Stakeholder needs
Project requirements
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Project Management Tradeoffs
Introduction to Project Management Contd.
Why Project Management
Project Management helps organizations meet customers’ /
stakeholders’ needs by
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Reducing uncertainty
Obtaining a better understanding of the objective
standardizing routine tasks
ensuring that available resources are used in most effective and
efficient manner
Providing a basis for monitoring and controlling
The application of project management principles enables
senior executives to:
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Project Management
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establish measure of success
enables customer focus and alignment
quantify value of the work
optimize the use of organizational resources
ensure quick response-to-market
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Introduction to Project Management Contd.
Factors Leading to Increased Use of Project
Management
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Project Management Context
A project management team must understand the
broader context in which the projects are
undertaken and completed.
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Project Phases and Life Cycle
Project Stake Holders
Organizational Influences
Social-Economic-Environmental Influences
Role of Project Manager
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Project Management Context Contd.
Project Phases and Life Cycle
Project are unique with degrees of uncertainty,
therefore are divided into phases for better control
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Usually three or four phases, ( Gray and Larson suggest Definition,
Planning, Execution and Delivery)
Phases; Initial, Intermediate( one or more) & Final
Concept (initiation), Development (planning), Implementation
(execution, construction), Termination (finishing, completion)
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Project Management Context Contd.
Example - Simple Generic Life Cycle
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Project Management Context Contd.
Project Lifecycle – Gray and Larson
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Project Management Context Contd.
Characteristics of Phases
Completion of Deliverables (a tangible, verifiable work
product such as a feasibility study, a detail design, or a
working prototype)
Phase-End Reviews (both project performance and key
phase deliverables)
Phase transitions
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Phase Exits
Stage Gates
Kill Points
A project is a system. A system can be broken into subsystems
with interaction between the subsystems. Each subsystem is itself a
system which can be further broken down. A project then can be
thought of as being composed of interacting subprojects. In general
each phase would correspond to a subproject
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Project Management Context Contd.
Phase Impact
Percentage
0
100
Impact
Concept
and
Development
Phases
Implementation
and Termination
$
0
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Percentage
Typical expenditure impact of project phases
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100
Project Management Context Contd.
Phase Impact in NPD Projects
100%
Cost committed
Detail
Design
Prototype
Trial
Validate Production
Concept
Cost expended
0%
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Time
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Project Management Context Contd.
Project Life Cycle Characteristics
Project Life Cycle
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Together the project phases, activities and tasks in a specified order are
referred as the project life cycle
It represents a framework which can be used to proactively manage the
projects through a sequence of defined events that are disciplined, orderly
and methodical.
Characteristics of Project Life Cycle
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Define the beginning and the end with three distinct parts: Initiation (start
up), Intermediate (Manage), Final (Close)
Links the project to on-going operations of the performing organization
Phase overlaps – Fast Tracking
What technical work should be done
Who should be involved in each phase
Cost and Staffing level are low at the start, higher during intermediate
phases and drop rapidly as the project draws to a conclusion
Uncertainty and risks are higher in the beginning
Ability of the stakeholders to influence the project scope, deliverable and
cost is higher in the beginning and gets progressively lower as project
continue
Cost of repair is much lower in the25beginning
Project Management Context Contd.
Example: Construction Project Life Cycle
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Project Management Context Contd.
Example: Defense Project Life Cycle
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Project Management Context Contd.
Example: Pharmaceutical Project Life Cycle
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Project Management Context Contd.
Example: Software Project Life Cycle
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Project Management Context Contd.
Class Exercise
Question?
Based on projects with which you have
been involved with, identify the phases
that the projects went through?
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Project Management Context Contd.
Project Stakeholders
Involved or interested individuals
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Project Manager
Customer
Performing Organization
Project Team Members
Sponsor
Department Manager (Originator)
R & D, Manufacturing
Owner
Community
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Project Management Context Contd.
Organizational Influences
A project is part of something bigger in the organization
and is therefore influenced by culture, style, structure
and maturity level of performing organization’s PM
systems. Higher levels of PM maturity often have
management and financial systems in place to facilitate
management by projects.
Organizational systems:
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Two types of project-based organizations.
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Derive revenue from projects e.g. Building and Construction
Company
Management by project (adopted PM systems and processes)
Non-project based organizations
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Project Management Context Contd.
Project Management Structures
Challenges to Organizing Projects
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Choosing an Appropriate Project Management
Structure
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The uniqueness and short duration of projects relative
to ongoing longer-term organizational activities – e.g.
allocation of resources.
The multidisciplinary and cross-functional nature of
projects creates authority and responsibility dilemmas.
Eventual integration with organization’s operations.
The best system balances
the needs of the project
with the needs of the
organization.
FUNCTIONAL
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PROJECTIZED
Project Management Context Contd.
Project Management Structures
Organizing Projects: Functional organization
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A functional organization is a hierarchy (with one clear
superior)
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Different segments of the project are delegated to
respective functional units.
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Coordination is maintained through normal management
channels.
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When the interest of one functional area dominates the
project, responsibility for project coordination is assigned
to a high ranking manager from that area.
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Project Management Context Contd.
Functional Organizations
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Project Management Context Contd.
Functional Organization of Projects
Advantages
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Prof. Raza Khan
Project Management
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No Structural
Change
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Flexibility
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In-Depth Expertise
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Easy Post-Project
Transition
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Disadvantages
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Lack of Focus
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Poor Integration
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Slow
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Lack of Ownership
Project Management Context Contd.
Project Management Structures
Organizing Projects: Projectized Organization
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Teams operate as separate units under the
leadership of a full-time project manager.
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In a projectized organization where projects are
the dominant form of business, functional
departments are responsible for providing support
for its teams.
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In a projectized organization team members are
often collocated. PM has a great deal of
independence and authority.
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Project Management Context Contd.
Project Organizational Structure
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Project Management Context Contd.
Dedicated Project Team
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Project Management Context Contd.
Project Organization: Dedicated Team
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Project Management
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Advantages
Disadvantages
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Simple
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Expensive
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Fast
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Internal Strife
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Cohesive
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Cross-Functional
Integration
Limited
Technological
Expertise
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Difficult PostProject Transition
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Project Management Context Contd.
Project Management Structures (cont’d)
Organizing Projects: Matrix Structure
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Hybrid organizational structure (matrix) is overlaid
on the normal functional structure.
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Matrix structure optimizes the use of resources.
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Provides dual focus - two chains of command (functional
and project)
Project participants report simultaneously to both functional
and project managers.
Allows for participation on multiple projects while
performing normal functional duties.
Achieves a greater integration of expertise and project
requirements.
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Project Management Context Contd.
Matrix Organization Structure
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Project Management Context Contd.
Division of Project Manager and Functional
Manager Responsibilities in a Matrix Structure
Project Manager
Negotiated Issues
Functional Manager
What has to be done?
Who will do the task?
How will it be done?
When should the task be done?
Where will the task be done?
How much money is available to
do the task?
Why will the task be done?
How will the project involvement
impact normal functional activities?
How well has the total project
been done?
Is the task satisfactorily
completed?
How well has the functional
input been integrated?
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Project Management Context Contd.
Different Matrix Forms
Functional (also Weak or Lightweight) Form
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Balance (or Middleweight) Form
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Matrices in which the authority of the functional
manager predominates and the project manager has
indirect authority.
The traditional matrix form in which the project
manager sets the overall plan and the functional
manager determines how work to be done.
Strong (Heavyweight) Form
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Resembles a project team in which the project
manager has broader control and functional
departments act as subcontractors to the project.
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Project Management Context Contd.
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Project Management Context Contd.
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Project Management Context Contd.
A Comparison of Organization Structures
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Project Management Context Contd.
Project Organization: Matrix Form
Advantages
Disadvantages
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Efficient
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Strong Project
Focus
Dysfunctional
Conflict
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Infighting
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Stressful
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Slow
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Easier Post-Project
Transition
Flexible
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Project Management Context Contd.
Organization Culture
Culture and style:
Reflected in shared values, norms, beliefs and
assumptions which binds people together,
thereby creating shared meaning.
{ Implications for the project management team
{ More in the text – chapter 3
{
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Project Management Context Contd.
Role of Project Manager
Project manager is responsible for the project from cradle
to grave. Project Manager:
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Marshals resources to complete a project on-time, on budget, and
within specifications
Provides a direct link to the customer and must manage the
interface between the customer expectations and what is feasible or
reasonable
Acts as intermediary between the top management and the project
team
Provides training, direction, coordination, and integration to the
project team
Builds trust
Inducts right resources at the right time to address the right issues
and make the right decisions
Manages all project stakeholders
Builds social networks (MBWA)
Ensures ethical behavior
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Project Management Context Contd.
Role of Project Manager
Qualities of an Effective
Project Manager
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Systems thinker
Personal integrity
Proactive
Problem Solver
High tolerance of stress
General Business perspective
Good Communicator
Effective time management
Skillful politician
Good Negotiator
Team Leader
Optimist
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Project Management Context Contd.
Role of Project Manager
Key General Management Skills for Project Managers
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Strategic Planning, Tactical Planning, Operational Planning
Managing work relationships through motivation, delegation,
supervision, team building, conflict management
Organizational Structures, Organizational Behavior, Personnel
Administration, Compensation, Benefits, Career Paths
Finance & Accounting, Sales & Marketing, R&D, Manufacturing
& Distribution
Managing oneself through time and stress management
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Project Management Context Contd.
PM Areas of Expertise
Tools, and techniques, which are generally recognized as good practice,
are not sufficient alone for effective project management. Effective
project management requires that the project management team
understand and use knowledge and skills from at least five areas of
expertise:
The Project Management Body of Knowledge
Application area knowledge, standards, and regulations
Understanding the project environment
General management knowledge and skills
Interpersonal skills.
Although they appear as discrete elements, they generally overlap; none
can standalone. Effective project teams integrate them into all aspects of
their project. It is not necessary for every project team member to be an
expert in all five areas. In fact, it is unlikely that any one person will have
all the knowledge and skills needed for the project. However, it is
important that the project management team is conversant in the
knowledge of the Project Management Body of Knowledge.
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