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Introduction: Why Project Management?

Introduction: Why Project Management?. Chapter 1. Introduction. Examples of projects Split the atom Chunnel between England and France Introduce Windows Vista Disneyland’s Expedition Everest “Projects, rather than repetitive tasks, are now the basis for most value-added in business”

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Introduction: Why Project Management?

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  1. Introduction: Why Project Management? Chapter 1

  2. Introduction • Examples of projects • Split the atom • Chunnel between England and France • Introduce Windows Vista • Disneyland’s Expedition Everest “Projects, rather than repetitive tasks, are now the basis for most value-added in business” -Tom Peters

  3. Project vs. Process Work Project • Take place outside the process world • Unique and separate from normal organization work • Continually evolving • Process • Ongoing, day-to-day activities • Use existing systems, properties, and capabilities • Typically repetitive A project is a temporary endeavor undertaken to create a unique product or service. PMBoK 2000

  4. Additional Definitions • A project is a unique venture with a beginning and an end, conducted by people to meet established goals within parameters of cost, schedule and quality. Buchanan & Boddy 92 • Projects are goal-oriented, involve the coordinated undertaking of interrelated activities, are of finite duration, and are all, to a degree unique. Frame 95

  5. Elements of Projects • Complex, one-time processes • Limited by budget, schedule, and resources • Developed to resolve a clear goalor set of goals • Customer-focused

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

  7. General Project Characteristics (2/2) • Entail crossing functional and organization boundaries • Traditional management functionsof planning, organizing, motivating, directing, and controlling apply • Principal outcomes are the satisfaction of customerrequirements within technical, cost, and scheduleconstraints • Terminated upon successful completion

  8. Process & Project Management(Table 1.1) • Process • Repeat process or product • Several objectives • Ongoing • People are homogeneous • Systems in place to integrate efforts • Performance, cost, & time known • Part of the line organization • Bastions of established practice • Supports status quo • Project • New process or product • One objective • One shot – limited life • More heterogeneous • Systems must be created to integrate efforts • Performance, cost & time less certain • Outside of line organization • Violates established practice • Upsets status quo

  9. Project Success Rates • Software & hardware projects fail at a 65% rate • Over half of all IT projects become runaways • Up to 75% of all software projects are cancelled • Only 2.5% of global businesses achieve 100% project success • Average success of business-critical application development projects is 35%.

  10. Why are Projects Important? • Shortened product life cycles • Narrow product launch windows • Increasingly complex and technical products • Emergence of global markets • Economic period marked by low inflation

  11. Project Life Cycles Man Hours Conceptualization Planning Execution Termination Fig 1.3 Project Life Cycle Stages

  12. Project Life Cycles • Conceptualization - the development of the initial goal and technical specifications. • Planning – all detailed specifications, schedules, schematics, and plans are developed • Execution – the actual “work” of the project is performed • Termination – project is transferred to the customer, resources reassigned, project is closed out.

  13. Conceptualization Planning Execution Termination Project Life Cycles and Their Effects Client Interest Project Stake Resources Creativity Uncertainty Fig 1.4

  14. Client Acceptance Budget Success Schedule Performance Quadruple Constraint of Project Success

  15. Six Criteria for IT Project Success • System quality • Information quality • Use • User satisfaction • Individual Impact • Organizational impact

  16. Importance 4 Preparing for The Future 3 Business Success 2 Impact on Customer 1 Project Efficiency Project Completion Time Four Dimensions of Project Success

  17. Developing Project Management Maturity Project management maturity models • Center for business practices • Kerzner’s project management maturity model • ESI International’s project framework • SEI’s capability maturity model integration

  18. Spider Web Diagram

  19. High Maturity Institutionalized, seeks continuous improvement Moderate Maturity Defined practices, training programs, organizational support Low Maturity Ad hoc process, no common language, little support Project Management MaturityGeneric Model

  20. Project Elements and Text Organization

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