Chapter 1

OVERVIEW OF PROJECT AND PROJECT

MANAGEMENT

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 Chapter outline

1.1 Overview of Project

1.2 The Project Life Cycle

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1.1 OVERVIEW OF PROJECT

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Introduction of projects

• In the past, most projects were external

• Building a new skyscraper
• New ad campaign
• Launching a rocket
• Growth lately is in internal projects
• Developing a new product
• Opening a new branch
• Improving the services provided to customers

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Introduction of projects

•Modern project management began with the

Manhattan Project
•In its early days, project management was
used mainly for large complex projects
•As the tools and techniques were developed,
the use of project organization began to
spread

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The Definition of a “Project”

PMI Definition:
“A temporary endeavor undertaken to create a unique product,
service, or result”

Project Management Institute, 2000

J.M.Juran’s definition:
“A project is a problem scheduled for solution”.

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Examples of projects

• Chunnel between England and France

• Introduce Windows Vista
• Disneyland’s Expedition Everest
• Lauch Iphone 5

“Projects, rather than repetitive tasks, are now the basis for most
value-added in business”
-Tom Peters

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Examples of projects

• From now till December, to increase sales of product A by 15% in

South East Asia.
• Within 8 months, to cut down 20% of defective products returned
after sales.
• Before the end of the year, to replace all domestic printers by high-
quality printers.
• …???

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This is not a project

• Work/activities are routine

• Work/activities are too small-scaled (Some companies specify a
minimum budget with which an activity cannot be seen as “a
project”, e.g., US$500 or US$1,000)

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 Project vs. Process Work
Project Process
• One- time event • Ongoing, day-to-day
activities
• Unique and separate from
normal organization work
• Use existing systems,
properties, and capabilities
• Continually evolving
• Typically repetitive

A project is a temporary endeavor undertaken to

create a unique product or service.
PMBoK 2000
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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.

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Comparison of Routine Work with Projects

Routine, Repetitive Work Projects

Taking class notes Writing a term paper
Daily entering sales receipts into the Setting up a sales kiosk for a
accounting ledger 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
Attaching tags on a manufactured stores 10,000 songs
product Wire-tag projects for GE and
Wal-Mart

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Growth in PMP Certification

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Elements of Projects

• Project can be considered to be any series of activities and tasks that:

- Have specific goals
- Have defined start and end date
- Have fund limit
- Cosume human and non-human resourses
- Multifunctional

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Elements of Projects

• Complex, one-time processes

• Limited by budget, schedule, and resources

• Developed to resolve a clear goal or set of goals

• Customer-focused

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General Project Characteristics (1/2)
• Ad-hoc endeavors with a clear life cycle

• Building blocks in the design and execution of organizational

strategies

• Responsible for the newest and most improved products, services,

and organizational processes

• Provide a philosophy and strategy for the management of change

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 General Project Characteristics (2/2)
• Entail crossing functional and organization boundaries

• Traditional management functions of planning, organizing,

motivating, directing, and controlling apply

• Principal outcomes are the satisfaction of customer requirements

within technical, cost, and schedule constraints

• Terminated upon successful completion

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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. Economic period marked by low inflation

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Integrated
Management of
Projects

FIGURE 1.2

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 The Technical
and Sociocultural
Dimensions
of the Project
Management Process

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 The Technical
and Sociocultural
Dimensions
of the Project
Management Process

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Projects Reflect Strategy

Projects are stepping stones of corporate strategy

The firm’s strategic development is a driving force
behind project development
Some examples include:

A firm wishing to… may have a project

redevelop products or processes, to reengineer products or processes.
change strategic direction or product to create new product lines.
portfolio configuration,
improve cross-organizational to install an enterprise IT system.
communication & efficiency

1-25
Strategic
Management
Process

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 Characteristics of Objectives

S Specific Be specific in targeting an objective

M Measurable Establish a measurable indicator(s) of progress

A Assignable Make the objective assignable to one person

for completion

R Realistic State what can realistically be done with

available resources

T Time related State when the objective can be achieved,

that is, duration
In 2 weeks, I will have my online store in Shopee, which will allow me to benefit financially from my favorite hobby. Within 5 weeks, I will have
an inventory of 100 handmade cards to sell and the goal is to sell a minimum of 20 cards
2 weeks - T
100 cards - A
20 cards - M
benefit financially - R 27
online store selling handmade cards - S
1.2 Project management

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 Exercise: Planning a Wedding Party

• 3 months from now; 200 guests (20% from far away); 100,000,000
dong budget => Objectives 500,0000,0000 dong

• What do you need to do?

• Who does what?
• How do you get started?
• What are the tradeoffs?
• How confident are you that you can succeed?

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Why project management?

• Today’s complex environments require ongoing implementations

• Project management is a method and a mindset… a disciplined
approach to managing chaos
• Project management provides a framework for working amidst
persistent change

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 Project management
– unofficial definition
• PM is about organization
• PM is about decision making
• PM is about changing people’s behavior create new things, new innovation
Ex: past - use Nokia, now - dont want to use Nokia anymore
• PM is about……!

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Project management

• Project management is application of knowledge, skills, tools and

techniques to project activities to achieve project requirements
(PMI, 2000)
• Project management is accomplished through the application and
integration of the project management processes of initiating,
planning, executing, monitoring and controlling, and closing.

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Project management

• The process of establishing and implementing a set of processes,

tools and capabilities to optimally use the resources to bring a
project to a “happy ending”
• Project identification
• Planning, setting schedules
• Implementing
• Control/monitoring, evaluating
• Completing

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 Project Management Process

Project Project Scope Project Time

Integration Mgt Mgt Mgt

Project Cost Project Quality Project Human

Mgt Mgt Resource Mgt

Project
Project Project Risk
Procurement
Communication Mgt
Mgt
Mgt
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 Indicators to ensure the success of a
project

• Completing the amounts of tasks/work

• Meeting the deadline
• Within the budget

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 Skill Requirements for Effective Project
Management
• Conflict Resolution
• Creativity and Flexibility
• Ability to Adjust to Change
• Good Planning
• Negotiation
• win-win versus win-lose

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 Triple Constraint

Performance, Cost, and Time Project Targets

2/3 but no client acceptance => fail project => lose investment

=> client acceptance

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PM Pyramid

Scope
Resource
Cost

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 Steps in managing a project

• Define the Problems/ Needs

• Develop solution options
• Plan the Project: What must be done? Who will do it?
How will it be done? When must it be done? How much
will it cost? What do we need to do it?
• Execute the Plan
• Monitor & control progress: Are we on target? If not,
what must be done? Should the plan be changed?
• Close project: What was done well? What should be
improved? What else did we learn?

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1.3 The Project Life Cycle

• Stages of a Conventional Project:

• Slow beginning
• Buildup of size
• Peak
• Begin a decline
• Termination

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The Project Life Cycle

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An Alternate Project Life Cycle

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 Project Life Cycle Stages
Man Hours

Conceptualization
Planning Execution Termination

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Project Life Cycles

• Conceptualization – the development of the initial goal and technical specifications

• Planning – all detailed specification, schedules, and plans are developed

• Execution – the actual "work" of the project is performed

• Termination – project is transfered to the customer, resources reassigned, project is closed outsta

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status report: to compare with the planning

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 Project Life Cycles and Their Effects
when introduce
Client Interest

Project Stakeholders

Resources

Creativity

when produce
Uncertainty

Conceptualization
Planning Execution Termination
from time: more people get involved (supplier,..) => more stakeholders Fig 1.4
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Phases of project management according
to PMI
• Initiation/Definition
• Planning
• Execution/Implementation and Control - Deliverables
• Closing

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1.3.1 Initiation/Definition

• The Project Initiation Phase specifies what the project will accomplish
and with what resources. It clarifies:
• project objectives,
• Project scope,
• purpose and deliverables
• project team,
• approval to proceed to the next phase of the project (Planning)

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Initiation – Project Activities

• Describe project
• Determine value
• List objectives and measures of success
• Identify governance
• Develop estimates
• List assumptions
• List risks
• List constraints
• List dependencies

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Initiation - Deliverables

• Project Charter
• defines the project objectives, deliverables and milestones
• contains high level estimates of resources needed to achieve those
objectives
• gives approval for resources to be assigned to the project.

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Project charter- An example

• Plan a corporate picnic during June this year for corporate employees
and family to bolster employee and company relations at the local
park by coordinating family activities and food to accommodate the
size of the group

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Project charter –
basic project questions
The project
• What?
• When?

• Who? T.O.R

• Why?
The Mission
• Where?
• How?

The Goal

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1.3.2 Planning

• Determine:
• what needs to be done,
• by whom,
• by when,
• Details the processes that the project manager will use to manage
the project.

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 Planning – Project Activities
• Define Scope
• Create Schedule
• Define Budget
• Quality Planning
• Quality Control
• Quality Assurance
• Communication Planning
• Risk Planning
• Change Planning
• Resource Planning

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Planning - Deliverables

• Project Plan
• Schedule
• Quality Plan
• Communication Plan
• Risk Plan
• Change Plan
• Resource Plan

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 1.3.3 Execution/Implementation and
Control

• Manage the delivery of the products and services based on the

project schedule.
• Project Manager monitors project progress and takes corrective
action when needed.
• Project Management tools include risk, issue, quality and change
control documentation and procedures.

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 Execution/Implementation and Control -
Project Activities

• Manage Issues
• Manage Change
• Manage Risks
• Manage Schedule
• Manage Communications
• Manage Quality
• Manage Procurement
• Manage Resources

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 Execution/Implementation and Control -
Deliverables

• Products and Services that the project is trying to

produce
• Related documentation

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 1.3.4 Closing
• Ensure that project documentation is completed and items requiring
further attention or support are transitioned.
• Conclude all project activities
• Administratively close the project
• Turn the delivered product or service over to a support group
• Assess project outcomes and team performance
• Document best practices and lessons learned
• Celebrate project success (according to PMI)

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Closing – Project Activities

• Gather Lessons Learned

• Create Project Summary
• Administrative Closeout
• Celebrate!

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Closing - Deliverables

• Project Management Toolkit improvements/updates

• Recommendations to other processes
• Project Summary

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 The Waterfall Model Concept
- How to prepare a project -
Step 1: The Project Scope
a) Project Mission and Goal
b) Goal and Terms of Reference

Step 2: Project Planning

a) Project Milestones
b) Project Organisation

Step 3: Project Execution

a) Taking Decisions
b) Doing Activities

Step 4: Project Control

a) Quantitative Control
b) Qualitative Control

Step 5: Project Communication

a) Internally
b) Externally 67
Quadruple Constraint of Project Success
other areas => still can be accepted by clients

Client
Budget Acceptance

Success
fully

Schedule Performance

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 Four Dimensions of Project Success
Importance

4
Preparing for
The Future
3
Business
2 Success
1 Impact on
Project Customer
Efficiency

Project Time
Completion

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Why projects succeed?

• Project sponsorship at executive level

• Good project charter
• Strong project management
• The right mix of team players
• Good decision making structure
• Good communications
• Team members are working toward common goals

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Why projects fail?

• Failure to align projects with organizational

objectives
• Poor scope
• Unrealistic expectations
• Lack of executive sponsorship
• Lack of project management
• Inability to move beyond individual and personality
conflicts
• Politics

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Project Stakeholders

”…are individuals and organisations who are actively involved in the

project, or whose interests may be positively or negatively affected as
a result of project execution or successful project completion”

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Project Stakeholder Relationships
Parent
Organization
Other External
Functional Environment
Managers

Project Top
Clients Management
Manager

Project
Accountant Team

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 Project stakeholders
CEO
Project manager First contractor

Coordinator Competitors

Mid manager Suppliers

Experts
Consultants Creditors

PROJECT Government bodies

Technical manager

Sub-Contractors
Others that might intervene
Contract manager
Local community
Users
Designer Public
Shareholders

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Managing Stakeholders

1. Assess the environment

2. Identify the goals of the principal actors

3. Assess your own capabilities

4. Define the problem

5. Develop solutions
6. Test and refine the solutions
Project Stakeholder Management Cycle
Identify
Stakeholders

Implement Gather Information

Stakeholder on Stakeholders
Management
Strategy
Project
Management Team
Predict
Identify
Stakeholder
Stakeholders’
Behavior
Mission

Identify
Stakeholder Determine
Strategy Stakeholder
Strengths &
Weaknesses

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 Project Rewards
• Money
• Status
• Recognition
• Responsibility
• Job satisfaction
• Challenge
• Appreciation

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