Introduction To Project Management
Prof. Ir. Dr. Sevia Mahdaliza Idrus
SHAS 4542 Sem1 Session 2023/24 - Chap 5
Ref: JK Pinto
Chap 1 & 3
2
What is a Project?
• Projects are complex, one-time
processes.
• Projects are limited by budget,
schedule, and resources.
• Projects are developed to resolve a
clear goal or set of goals.
• Projects are customer-focused.
A project is a temporary endeavor
undertaken to create a unique
product, service, or result.
Project
Characteristics
1.
Projects are ad hoc endeavors with a clear life cycle.
2.
Projects are building blocks in the design and execution of organizational
strategies.
3.
Projects are responsible for the newest and most improved products, services,
and organizational processes.
4.
Projects provide a philosophy and strategy for the management of change.
5.
Project management entails crossing functional and organizational
boundaries.
Project Characteristics
6.
7.
8.
Traditional management
functions of planning,
organizing, motivation,
directing, and control apply
to project management.
Principal outcomes of a
project are the satisfaction
of customer requirements
within the constraints of
technical, cost, and
schedule objectives.
Projects are terminated
upon successful completion
of performance objectives.
Process vs Project Management
PROCESS
• Repeat process or
product
• Several objectives
• Ongoing
• People are homogenous
• Well-established systems
• Greater certainty
• Part line organization
• Established practices
• Supports status quo
PROJECT
New process or product
One objective
One-shot-limited life
More heterogeneous
Integrated system efforts
Greater uncertainty
Outside of line
organization
• Violates established
practice
• Upsets status quo
•
•
•
•
•
•
•
Table 1.1: Pinto 2016, Pearson.
Why Are Projects Important?
1. Shortened product life cycles
2. Narrow product launch
windows
3. Increasingly complex and
technical products
4. Emergence of global markets
5. An economic period marked
by low inflation
Project Life Cycles
Figure 1.3: Pinto 2016, Pearson.
Project Life Cycles
1. A project life cycle refers to the stages in a project’s
development and are divided into four distinct
phases:
2. Conceptualization – development of the initial goal
and technical specifications of the project. Key
stakeholders are identified and signed on at this
phase.
3. Planning – all detailed specifications, schedules,
schematics, and plans are developed.
4. Execution – the actual “work” of the project is
performed.
5. Termination – project is transferred to the customer,
resources reassigned, project is closed out.
Change During Project Life Cycle
Client
Interest
Project
Stake
Resources
Creativity
Uncertainty
Effects of Project Life Cycle
Figure 1.4: Pinto 2016, Pearson.
Budget
Quadruple
Constraint of
Project Success
Time
SUCCESS
Performance
Client
Acceptan
ce
Four Dimension Of Project Success
Figure 1.7: Pinto 2016, Pearson.
System
Quality
Individual
Impact
User
Satisfacti
on
Informatio
n Quality
Six Criteria For
Project
Success
Optimum
Usage
Organizatio
nal Impact
Project Management Maturity
• Project management maturity (PMM)
models are used to allow organizations to
benchmark the best practices of
successful project management firms.
• Benchmarking is the practice of
systematically managing the process
improvements of project delivery by a
single organization of a period of time.
PM Spider Web Diagram
Figure 1.8: Pinto 2016, Pearson.
1-16
PM Spider Web With Embedded
Organizational Evaluation
Figure 1.9: Pinto 2016, Pearson.
PM Maturity Generic Model
High
Maturity
Institutional seeks
continuous improvement
Moderate Maturity
Low Maturity
Defined practices,
training programs &
organizational
support.
Ad hoc process, no
common language &
little support.
Project Management
Maturity (PMM) Models
1.
2.
3.
4.
Center for Business Practices (CBP)
Kerzner’s Project Management Maturity (Kerzner’s PMM)
ESI International’s Project Framework (ESI- IPF)
SEI’s Capability Maturity Model Integration (SEI – CMMI)
Project Management Maturity (PMM) Models
Level
CBP
Kerzner’s
ESI-IFP
SEI-CMMI
1
Initial Phase
Common
Language
Ad Hoc
Initial
2
Structure,
Process &
Standard
Common
Processes
Consistent
Managed
3
Institutionalized
Project
Management
Singular
Methodology
Integrated
Defined
4
Managed
Benchmarking
5
Optimizing
Continuous
Improvement
Comprehensiv Quantitative
e
Manageme
nt
Optimizing
Optimizing
Project Elements and Organization
Figure 1.11: Pinto 2016, Pearson.
Overview Of The PM Institute’s Knowledge Areas
Figure 1.12: Pinto
2016, Pearson.
Project Selection
Realism
Capability
Screening models help managers
pick winners from a pool of projects.
Screening models are numeric or
nonnumeric and should have:
Flexibility
Ease of use
Cost effectiveness
Comparability
Screening
&
Selection Issues
All models only
partially reflect
reality and have
both objective and
subjective factors
imbedded.
Risk –
unpredictability
to the firm
•
•
•
•
•
Technical
Financial
Safety
Quality
Legal exposure
Commercial –
market potential
•
•
•
•
•
•
Expected return on investment
Payback period
Potential market share
Long-term market dominance
Initial cash outlay
Ability to generate future
business/new markets
Internal
operating –
changes in firm
operations
•
•
Need to develop/train employees
Change in workforce size or
composition
Change in physical environment
Change in manufacturing or
service operations
Additional
•
•
•
•
•
Patent protection
Impact on company’s image
Strategic fit
Approaches to
Project Screening
1.
Checklist Model
2.
Simplified Scoring Models
3.
Analytic Hierarchy Process
4.
Profile Models
Copyright ©2016 Pearson Education, Ltd.
3-25
Proactive
Portfolio Matrix
3-26
Project Manager Responsibilities
1.
Selecting a team
2.
Developing project objectives
and a plan for execution
3.
Performing risk management
activities
4.
Cost estimating and
budgeting
5.
Scheduling
6.
Managing resources
Role of Project Manager
2
9
Keys to Successful
Project Portfolio Management
▪ Flexible structure and freedom of
communication
▪ Low-cost environmental scanning
▪ Time-paced transition
Problems in Implementing
Portfolio Management
• Conservative technical
communities
• Out-of-sync projects and portfolios
• Unpromising projects
• Scarce resources
PM Summary
1.
Understand why project management is becoming such a powerful and popular practice in business.
2.
Recognize the basic properties of projects, including their definition.
3.
Understand why effective project management is such a challenge.
4.
Differentiate between project management practices and more traditional, process-oriented business
functions.
5.
Recognize the key motivators that are pushing companies to adopt project management practices.
6.
Understand and explain the project life cycles, its stages, and the activities that typically occur at each
stage in the project.
7.
Understand the concept of project “success,” including various definitions of success, as well as alternative
models of success.
8.
9.
Understand the purpose of project management maturity models and the process of benchmarking in
organizations.
Identify the relevant maturity stages that organizations go through to become proficient in their use of
project management techniques.
PM Summary
10. Explain six criteria for a useful project selection/ screening model.
11. Understand how to employ checklists and simple scoring models to
select projects.
12. Use more sophisticated scoring models, such as the Analytical Hierarchy
Process.
13. Learn how to use financial concepts, such as the efficient frontier and
risk/return models
14. Employ financial analyses and options analysis to evaluate the potential
for new project investments.
15. Recognize the challenges that arise in maintaining an optimal project
portfolio for an organization.
16. Understand the three keys to successful project portfolio management.
Terima Kasih.Thank You
sevia@utm.my