Chapter 1
Project Management Concepts
Learning Objectives
• Definition of a project and its attributes
• Key constraints within which a project must be
managed
• How a project is “born”
• Life of a project
• Relationship to other Managerial Discipline
• Steps involved in the project management process
• Benefits of project management
• Project Management Knowledge Areas 2
Real World Example
• Vignette: Beach Town Cleanup – Avila Beach in
California
• The popular beach and the town’s business district had
been contaminated by underground pipes from a
petroleum facility.
• Project management techniques were used to restore
the streets, all major utilities, and the beach itself.
• The remediation project was completed five months
ahead of schedule!
3
Real World Example
• Vignette: The Department of Energy
• Project – build the world’s largest laser to monitor
and maintain nuclear warheads
• Project costs soar $350 million above original
estimates
• Project completion delayed by two years
• “Clearly we had a major project management
surprise!”
4
Project, Defined
• A project is an endeavor to accomplish a specific
objective through a unique set of interrelated tasks
and the effective utilization of resources.
5
Attributes of a Project
• Has a well-defined objective
• Composed of a series of interdependent tasks
• Utilizes various resources
• Has a specific time frame
• Has a customer
• Involves a degree of uncertainty
6
Examples of Projects
• Planning a wedding
• Designing and implementing a computer system
• Hosting a holiday party
• Designing and producing a brochure
• Executing an environmental clean-up of a
contaminated site
• Holding a high school reunion
• Performing a series of surgeries on an accident
victim 7
Constraints
• Scope
• Cost
• Schedule
• Customer satisfaction
8
Unforeseen Circumstances
• Unforeseen circumstances may jeopardize
achievement of the project objective.
• The challenge facing the project manager is to
prevent, anticipate, and/or overcome such
circumstances.
9
Relationship to Other
Managerial Disciplines
Project Manager
Project Organizational Structure ( for project of medium complexity)
Cont’ed
Cont’ed
General Management Project Management
Manage status quo Overseeing Changes
Management Authority Fuzzy Authority
Consistent Set of Tasks Ever Changing Set of Tasks
Limited Function Cross Functionality Activities
Permanent Organization Temporary depends of the life of
Structures projects
Task = Maintenance Task= Innovation
Main Task = Optimization Main Task = Resolution of Conflict
Success determined by Success determined by
Achievement of Interim Target Achievement of Started End-
Goals
Limited set of variables Intrinsic Uncertainties
The Project Life Cycle
• Projects are “born” when a need is identified by
the customer.
• Project life cycles vary in length, from a few
weeks to several years.
• Not all projects formally go through all four
phases of the project life cycle.
10
Phases of the Project Life Cycle
1
• The first phase involves the identification of a
need, problem, or opportunity.
– The need and requirements are usually written
by the customer into a document called a
request for proposal (RFP).
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Phases of the Project Life Cycle
2
• The second phase is the development of a
proposed solution to the need or problem.
– This phase results in the submission of a
proposal.
– The customer and the winning contractor
negotiate and sign a contract (agreement).
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Phases of the Project Life Cycle
3
• The third phase is performing the project.
– Different types of resources are utilized
– Results in the accomplishment of the project
objective
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Phases of the Project Life Cycle
4
• The final phase is terminating the project.
– Perform close-out activities
– Evaluate performance
– Invite customer feedback
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The Project Management
Process
• The project management process means planning
the work and then working the plan.
15
The Project Management
Process
(Cont.)
• Clearly define the project objective.
• Divide and subdivide the project.
• Define the specific activities that need to be
performed.
• Graphically portray the activities in a network
diagram.
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The Project Management
Process (Cont.)
• Make a time estimate.
• Make a cost estimate.
• Calculate a project schedule and budget.
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Controlling Projects
• Establish a baseline plan.
• Monitor progress.
• Measure actual progress and compare it to planned
progress.
• Take corrective action if the project is behind
schedule, overrunning the budget, or not meeting
technical specifications.
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Benefits of Project Management
• Satisfied customers
• Additional business
• Expansion of career opportunities
• Satisfaction of being on a winning team
• Improved knowledge and skills
When projects are successful, everybody WINS
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Project Management Knowledge
Areas