Because learning changes everything. ® Chapter One Modern Project Management © 2021 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education. An Overview of Project Management 8th Ed-pg 1 © McGraw-Hill Education 2 Learning Objectives 1-1 Understand why project management (PM) is crucial in today’s world 1-2 Distinguish a project from routine operations 1-3 Identify the different stages of a project life cycle 1-4 Describe how Agile PM is different from traditional PM 1-5 Understand that managing projects involves balancing the technical and sociocultural dimensions of the project © McGraw-Hill Education 3 Chapter Outline 1.1 What Is a Project? 1.2 Current Drivers of Project Management 1.3 Agile Project Management 1.4 Project Management Today: A Socio-Technical Approach © McGraw-Hill Education 4 Examples of Projects Given to Recent College Graduates-pg5 • Business information: install new data security system • Physical education: develop a new fitness program for senior citizens • Marketing: execute a sales program for a new home air purifier • Industrial engineering: create a value chain report for every aspect of a key product from design to customer delivery • Chemistry: develop a quality control program for an organization’s drug production facilities • Management: implement a new store layout design • Pre-med neurology student: join a project team linking mind mapping to an imbedded prosthetic that will allow blind people to function normally • Sport communication: create a promotion plan for a women’s basketball project • Systems engineers: develop data mining software of medical papers and studies related to drug efficacy • Accounting: work on an audit of a major client • Public health: design a medical marijuana educational program • English: create a web-based user manual for a new electronics product © McGraw-Hill Education 5 Snap shoot-page 4 Class: make sure you read this for discussion next week. © McGraw-Hill Education 6 1.1 What Is a Project?-pg 6 and7 Project Defined (according to PMI) • A temporary endeavor undertaken to create a unique product, service, or result Major Characteristics of a Project • Has an established objective • Has a defined life span with a beginning and an end • Involves several departments and professionals • Involves doing something never been done before • Has specific time, cost, and performance requirements © McGraw-Hill Education 7 Program versus Project Program Defined • A group of related projects designed to accomplish a common goal over an extended period of time Program Management Defined • A process of managing a group of ongoing, interdependent, related projects in a coordinated way to achieve strategic objectives Examples: • Project: completion of a required course in project management • Program: completion of all courses required for a business major © McGraw-Hill Education 8 Comparison of Routine Work with Projects (pg 9) 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 © McGraw-Hill Education TABLE 1.1 9 Redad snap shot on page 8 to discuss next week © McGraw-Hill Education 10 Project Life Cycle-pg 10 © McGraw-Hill Education FIGURE 1.1 11 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 the direct link to the customer. • Works with a diverse troupe of characters. • 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. © McGraw-Hill Education 12 1.2 Current Drivers of Project Management Factors leading to the increased use of project management: • Compression of the product life cycle • Knowledge explosion • Triple bottom line (planet, people, profit) • Increased customer focus • Small projects represent big problems © McGraw-Hill Education 13 1.3 Agile Project Management (page 13) Agile Project Management (Agile PM) • Is a methodology emerged out of frustration with using traditional project management processes to develop software. • Is now being used across industries to manage projects with high levels of uncertainty. • Employs an incremental, iterative process sometimes referred to as a ‘rolling wave’ approach to complete projects. • Focuses on active collaboration between the project and customer representatives, breaking projects into small functional pieces, and adapting to changing requirements. • Is often used up front in the defining phase to establish specifications and requirements, and then traditional methods are used to plan, execute, and close the project. • Works best in small teams of four to eight members. © McGraw-Hill Education 14 Rolling Wave Development (pg 14) • Iterations typically last from one to four weeks. • The goal of each iteration is to make tangible progress such as define a key requirement, solve a technical problem, or create desired features to demonstrate to the customer. • At the end of each iteration, progress is reviewed, adjustments are made, and a different iterative cycle begins. • Each new iteration subsumes the work of the previous iterations until the project is completed and the customer is satisfied. © McGraw-Hill Education FIGURE 1.3 15 1.4 Project Management Today: A Socio-Technical Approach The Technical Dimension (The “Science”) • Consists of the formal, disciplined, purely logical parts of the process. • Includes planning, scheduling, and controlling projects. The Sociocultural Dimension (The “Art”) • Involves the contradictory and paradoxical world of implementation. • Centers on creating a temporary social system within a larger organizational environment that combines the talents of a divergent set of professionals working to complete the project. © McGraw-Hill Education 16 A Socio-Technical Approach to Project Management (pg17) © McGraw-Hill Education FIGURE 1.4 17 Text Overview • Chapter 2 focuses on how organizations go about evaluating and selecting projects. • Chapter 3 discusses matrix management and other organization forms and also discusses the significant role that culture of an organization plays in the implementation of projects. • Chapter 4 deals with defining the scope of the project and developing a work breakdown structure (WBS). • Chapter 5 explores the challenge of formulating cost and time estimates. • Chapter 6 focuses on utilizing the information from the WBS to create a project plan in the form of a timed and sequenced network of activities. © McGraw-Hill Education 18 Text Overview (Continued) • Chapter 7 examines how organizations and managers identify and manage risks associated with project work. • Chapter 8 explores resource allocation and how resource limitations impact the project schedule. • Chapter 9 examines strategies for reducing project time either prior to the initiation of the project or in response to problems or new demands placed on the project. • Chapter 10 focuses on the role of the project manager as a leader and stresses the importance of managing project stakeholders within the organization. • Chapter 11 focuses on the core project team and combines the latest information on team dynamics with leadership skills/techniques of developing a high-performance project team. © McGraw-Hill Education 19 Text Overview (Continued) • Chapter 12 discusses how to outsource project work and negotiates with contractors, customers, and suppliers. • Chapter 13 focuses on the kinds of information managers use to monitor project progress and discusses the key concept of earned value • Chapter 14 covers closing out a project and the important assessment of performance and lessons learned. • Chapter 15 discusses agile project management, a much more flexible approach to managing projects with high degree of uncertainty. • Chapter 16 focuses on working on projects across cultures. © McGraw-Hill Education 20 Key Terms Agile project management (Agile PM) Program Project Project life cycle Project Management Professional (PMP) © McGraw-Hill Education 21 ICA 1-1 : Break room 1- students to work in teams and share Class: In teams develop a comparative listing of 4 items in the following domains to compare between projects and programs. Manufacturing , Service , process and one area of your choice (high tech, pharmaceutical, construction, etc.) Routine, Repetitive Work Projects Programs MFG: Service Process Domaine of your choice (refer to slides 29) TABLE 1.1 © McGraw-Hill Education Teams Share 1 © McGraw-Hill Education Histrorical Prespective Historical Perspective • • • • 1960’s 1970’s 1980’s 1990-2005 Networks—CPMN/PERT Triple Constraints Multi Project Management Integration • Aligning projects with organization strategy • Consistent, structured approach to managing projects © McGraw-Hill Education Trends in Project Management Increasing Scope of Project Management System Integration Portfolio Project Management Project Office Structure, Discipline and Best Practices Organization Culture Multi Cultural Projects Information Technology Risk Management Outsourcing © McGraw-Hill Education Integration of Projects with Organization Strategy • Problem: Too many project proposals, given limited resources of money, people, and equipment. • Solution: Allocate resources to projects that contribute the most value to strategy (customer) and balance organization risk. © McGraw-Hill Education Integration within Process of Managing Project • Problem: Disjointed tools and systems and non-supporting organization culture. • Solution: Tie all together in a seamless structure within your operating environment. © McGraw-Hill Education Importance of Trends to You! • This is the environment you can expect to find when you work as a project manager. • With knowledge of the core and best practices, how can you use and apply them in your environment? • Your best bet for success is to thoroughly understand the core and have a firm idea about how you intend to manage in the environment you are given. © McGraw-Hill Education Projects versus Routine Operations Projects Routine Operations Unique Repetitive Limited life span Continuous Multiple stakeholders Department Sponsor Supervisor Variable demand for resources Stable Uncertainty Stable Variety of resource skills Limited, specialized skill set © McGraw-Hill Education HWK-1 and 4 (2 and 3 was class team exercise)-page20 Case study page 21 Case study (ct) Case study (CT) Chapter 1 Homework Page 20 Exercise 1 and 4 Case studuy : answer question : Exercise 1 and 2 ICA 1-1 : students to work in teams and share Class: In teams develop a comparative listing of 4 items in the following domains to compare between projects and programs. Manufacturing , Service , process and one area of your choice (high tech, pharmaceutical, construction, etc.) Be Ready to have a short 2-3 minute share of you work with class. Submit via ICA in blackboard one per team Routine, Repetitive Work Projects Programs MFG: Service Process of choice (refer to slides 29) TABLE 1.1 HWK-1 and 4 Break room: (2 and 3 was class team exercise)-page20 Be Ready to have a short 2-3 minute share of you work with class. Submit as One pe team blackboard ICA (one per team) Additional Definitions (not in text)
