Summary Midterm Project Management
Chapter 1 – Introduction, Why Project Management?
Project = a temporary endeavor undertaken to create a unique product, service, or result
Elements of projects, project are…
- Complex, one-time processes
- Limited by budget, schedule, and resources
- Developed to resolve a clear goal or set of goals
- Are customer-focused
A project can be considered to be any series of activities and tasks that…
- Have a specific objective to be completed within certain specifications
- Have defined start and end dates
- Have funding limits, if applicable
- Consume human and nonhuman resources, such a money, people, equipment
- Are multifunctional
Projects are characterized by the following properties
1. Projects are ad hoc endeavors with a clear life cycle. (ad hoc = clear purpose)
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
6. The traditional management functions of planning, organizing, motivation, directing
and control apply to project management
7. The principal outcomes of a project are the satisfaction of customer requirements
withing the constraints of technical, cost and schedule objectives
8. Projects are terminated upon successful completion of performance objectives
Process = ongoing, day-to-day activities in which an organization engages while producing
goods or services
Process Project
Repeat process or product New process or product
Several objectives One objective
Ongoing One shot – limited life
People are homogenous More heterogenous
Well-established systems in place to Systems must be created to integrate
integrate efforts efforts
Greater certainty of performance, cost and Greater uncertainty of performance, cost
schedule and schedule
Part of line organization Outside of line organization
Bastions of established practice Violates established practice
Supports status quo Upsets status quo
Why are projects important?
1. Shortened product life cycles
2. Narrow product launch windows
3. Increasingly complex and technical products
, 4. Global markets
5. An economic period marked by low inflation
Project lifecycle = the stages in a project’s development
- Conceptualization = the development of the initial goal and technical specifications
for a project
- Planning = the stage in which all detailed specifications, schematics, schedules and
other plans are developed
- Execution = the actual ‘’work’’ of the project is performed, the system developed, or
the product created and fabricated
- Termination = the completed project is transferred to the customer, its resources
reassigned, and the project formally closed out
5 components of a project may change over the course of its life cycle
1. Client interest = the level of enthusiasm or concern expressed by the project’s
intended customer. Clients can be either internal or external to the organization
2. Project stake = the amount of corporate investment in the projects. The longer the
life of the project, the greater the investment
3. Resources = the commitment of financial, human and technical resources over the
life of the projects
4. Creativity = the degree of innovation required by the project, especially during
certain development phases
5. Uncertainty = the degree of risk associated with the project. Riskiness here reflects
the number of unknowns, including technical challenges that the project is likely to
face. Uncertainty is highest at the beginning because many challenges have yet to be
identified, let alone addressed
,Determinants of project success
1. Time = projects are constrained by a specified period
of time during which they must be completed
2. Budget = a second key constraint for all projects is a
limited budget
3. Performance = all projects are developed in order to
adhere to some initially determined technical
specifications
o Performance then means determining whether
the finished product operates according to
specifications
o Conducting a quality check = the project’s
clients naturally expects that the project being
developed on their behalf will work as
expected
o Triple constraint = the standard by which
project performance was routinely assessed
4. Client acceptance = projects are developed with customers or clients in mind and
their purpose is to satisfy customers’ needs
4 dimensions of project success importance
1. Project efficiency = meeting budget and schedule expectations
2. Impact on customer = meeting technical specifications, addressing customer needs
and creating a project that satisfies the client’s needs
3. Business success = determining whether the project achieved significant commercial
success
4. Preparing for the future = determining whether the project opened new markets or
new product lines or helped to develop new technology
, Atkinson model = all groups are affected by a project, in conflict with triple-constraint model
Iron triangle Information Benefits (organization) Benefits (stakeholders)
system
Cost Maintainability Improved efficiency Satisfied users
Quality Reliability Improved effectiveness Social an environmental impact
Time Validity Increased profits Personal development
Information quality Strategic goals Professional learning, contractors’
profits
Use Organization learning Capital suppliers, content
Reduced waste Project team, economic impact to
surrounding community
Project management maturity models = used to allow
organizations to benchmark the best practices of
successful project management firms. Recognize that
different organizations are currently at different levels
of sophistication in their best practices for managing
projects
1. Analyze and critically evaluate current practices
as they pertain to managing projects
2. Compare those practices against those of chief
competitors or some general industry standard
3. Define a systematic route for improving these
practices
Chapter 1 – Introduction, Why Project Management?
Project = a temporary endeavor undertaken to create a unique product, service, or result
Elements of projects, project are…
- Complex, one-time processes
- Limited by budget, schedule, and resources
- Developed to resolve a clear goal or set of goals
- Are customer-focused
A project can be considered to be any series of activities and tasks that…
- Have a specific objective to be completed within certain specifications
- Have defined start and end dates
- Have funding limits, if applicable
- Consume human and nonhuman resources, such a money, people, equipment
- Are multifunctional
Projects are characterized by the following properties
1. Projects are ad hoc endeavors with a clear life cycle. (ad hoc = clear purpose)
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
6. The traditional management functions of planning, organizing, motivation, directing
and control apply to project management
7. The principal outcomes of a project are the satisfaction of customer requirements
withing the constraints of technical, cost and schedule objectives
8. Projects are terminated upon successful completion of performance objectives
Process = ongoing, day-to-day activities in which an organization engages while producing
goods or services
Process Project
Repeat process or product New process or product
Several objectives One objective
Ongoing One shot – limited life
People are homogenous More heterogenous
Well-established systems in place to Systems must be created to integrate
integrate efforts efforts
Greater certainty of performance, cost and Greater uncertainty of performance, cost
schedule and schedule
Part of line organization Outside of line organization
Bastions of established practice Violates established practice
Supports status quo Upsets status quo
Why are projects important?
1. Shortened product life cycles
2. Narrow product launch windows
3. Increasingly complex and technical products
, 4. Global markets
5. An economic period marked by low inflation
Project lifecycle = the stages in a project’s development
- Conceptualization = the development of the initial goal and technical specifications
for a project
- Planning = the stage in which all detailed specifications, schematics, schedules and
other plans are developed
- Execution = the actual ‘’work’’ of the project is performed, the system developed, or
the product created and fabricated
- Termination = the completed project is transferred to the customer, its resources
reassigned, and the project formally closed out
5 components of a project may change over the course of its life cycle
1. Client interest = the level of enthusiasm or concern expressed by the project’s
intended customer. Clients can be either internal or external to the organization
2. Project stake = the amount of corporate investment in the projects. The longer the
life of the project, the greater the investment
3. Resources = the commitment of financial, human and technical resources over the
life of the projects
4. Creativity = the degree of innovation required by the project, especially during
certain development phases
5. Uncertainty = the degree of risk associated with the project. Riskiness here reflects
the number of unknowns, including technical challenges that the project is likely to
face. Uncertainty is highest at the beginning because many challenges have yet to be
identified, let alone addressed
,Determinants of project success
1. Time = projects are constrained by a specified period
of time during which they must be completed
2. Budget = a second key constraint for all projects is a
limited budget
3. Performance = all projects are developed in order to
adhere to some initially determined technical
specifications
o Performance then means determining whether
the finished product operates according to
specifications
o Conducting a quality check = the project’s
clients naturally expects that the project being
developed on their behalf will work as
expected
o Triple constraint = the standard by which
project performance was routinely assessed
4. Client acceptance = projects are developed with customers or clients in mind and
their purpose is to satisfy customers’ needs
4 dimensions of project success importance
1. Project efficiency = meeting budget and schedule expectations
2. Impact on customer = meeting technical specifications, addressing customer needs
and creating a project that satisfies the client’s needs
3. Business success = determining whether the project achieved significant commercial
success
4. Preparing for the future = determining whether the project opened new markets or
new product lines or helped to develop new technology
, Atkinson model = all groups are affected by a project, in conflict with triple-constraint model
Iron triangle Information Benefits (organization) Benefits (stakeholders)
system
Cost Maintainability Improved efficiency Satisfied users
Quality Reliability Improved effectiveness Social an environmental impact
Time Validity Increased profits Personal development
Information quality Strategic goals Professional learning, contractors’
profits
Use Organization learning Capital suppliers, content
Reduced waste Project team, economic impact to
surrounding community
Project management maturity models = used to allow
organizations to benchmark the best practices of
successful project management firms. Recognize that
different organizations are currently at different levels
of sophistication in their best practices for managing
projects
1. Analyze and critically evaluate current practices
as they pertain to managing projects
2. Compare those practices against those of chief
competitors or some general industry standard
3. Define a systematic route for improving these
practices
