SPI 2206: Project Management

Lecture 1: Introduction to Project Management

A project is a [temporary] sequence of unique, complex, and connected activities having one goal

or purpose and that must be completed by specific time, within budget, and according to

specification.

Project management is the process of scoping, planning, staffing, organizing, directing, and

controlling the development of an acceptable system at a minimum cost within a specified time

frame.

A project is a set of activities which should be undertaken in a logical sequence for the

propose of attaining some specified objectives within a given time period, budget and at a

given quality specification

A project is an interrelated set of activities that has a definite starting and ending point and

results in the accomplishment of a unique, often major outcome.

A project is a means of moving from a problem to a solution via a series of planned

activities. It has project a definite beginning and end.

Examples of typical projects are for example:

• Personal projects (obtain a degree, diploma, write a report, plan a wedding, plant a garden,
build a house extension)
• Industrial projects (construct a building, provide a gas supply to an industrial estate, build a
motorway, design a new car)
• Business projects (develop a new course, develop a new course, develop a computer system,
introduce a new product, and prepare an annual report, set up a new office)

Project management is the application of knowledge, Skills, tools and techniques to project

activities in order to meet or exceed stakeholder needs and expectations from a project.

Project management is the discipline of planning, organizing, securing and managing

resources to bring about the successful completion of specific project goals.

Project management is an approach to management of work within the constraints of time,

cost, and performance requirements.

comprise the project.

Project management aims to ensure the effective use of resources and delivery of the project objectives
on time and within cost constraints.

Measures of Project Success

– The resulting information system is acceptable to the customer.

– The system was delivered “on time.”

– The system was delivered “within budget.”

– The system development process had a minimal impact on ongoing business operations.

Causes of Project Failure

• Failure to establish upper-management commitment to the project

• Lack of organization’s commitment to the system development methodology

• Taking shortcuts through or around the system development methodology

• Poor expectations management

• Premature commitment to a fixed budget and schedule

• Poor estimating techniques

• Overoptimism

• The mythical man-month (Brooks, 1975)

• Inadequate people management skills

• Failure to adapt to business change

• Insufficient resources

• Failure to “manage to the plan”

Importance of Project Management in Organization

Project management is a growing field used increasingly by businesses of all sizes. As

entrepreneurs and company executives‘ deal with the daily responsibilities of managing an

organization, it is important to use dedicated project managers to oversee projects from

conception to completion. Understanding effective project management techniques helps

organizations carry out large-scale projects on time, on budget and with minimal disruption to
the rest of the business.

a) Organizing Chaos

Projects are naturally chaotic. The primary business function of project management is

organizing & planning projects to tame this chaos. It‘s hard to think of any complex business

endeavour that was ever achieved without organization & planning.

Project management is the organization, planning and control of projects.

b) Managing Risk

Any good project has plenty of risk. After all, the nature of business is taking risks. Risk is a

fundamental part of business strategy. However, risk needs to be managed. Risk is that

chance of a negative event or loss. Uncontrolled risk taking ends in asset destruction and

compliance issues. Project management identifies, manages and controls risk.

c) Managing Quality

Quality is the value of what you produce. There's not much sense producing something

that has no value. Leaving quality to chance is analogous to producing something of

random value.

Project management identifies, manages and controls quality.

d) Managing Integration

Projects don't happen in a vacuum. They need to be integrated with business processes,

systems and organizations. You can't build a sales system that doesn't integrate with your

sales process and sales organization. It wouldn't add much value. Integration is often

key to project value. Project management identifies and manages integration.

e) Managing Change

Projects always happen in an environment in which nothing is constant except change.

Projects are always a moving target. Managing change is a complex and daunting task. It's

not optional. Unless you can put your business universe on pause, change happens whether

you manage it or not. Project management manages change.

f) Learning From Failure

Projects fail. When they do, it's important to learn from the process. Learning from failure

is key to business innovationand quality improvement. Project management ensures that

Others include;

a. Temporary and Unique Venture

While a business is a continuous and on-going operation, a project is a temporary venture

aimed at producing a unique product, service or process. In many cases, this uniqueness

means there aren't any blueprints or steps in place to develop the end product. Project

managers have expertise and experience in creating plans to deliver these items. In addition,

they seamlessly integrate resources across a company's departments and utilize

communication, planning and budgeting skills to bring projects to completion.

b. Project Management Skills

Many business projects involve large-scale planning that affects every department or aspect

of a business. Implementing the project may mean dealing with human resources, budgetary

and supply constraints. Accredited project managers are skilled in project management

techniques specific to dealing with one-time projects. They can create plans to manage

interdependence and address resource conflict. Organizations that use project management to

monitor and control processes and schedules can more effectively complete their projects on

time and on budget.

Creating a project timeline requires coordinating project activities in conjunction with the ongoing
business activities. A project manager will identify and detail activities required in each

phase of a project and lead teams with members of your staff to carry out each phase.

Working within the parameters of a project management plan, a schedule sets out target dates

for completion of tasks within each phase. The time line is directly correlated to the scope of

a project.

d. Scope

Project management is imperative for organizations implementing wide-ranging or

comprehensive projects. Scope refers to the breadth of a project, or how much of the business

will be affected, and the bigger the project, the more details and planning are required to

successfully bring it to fruition. Carrying out a wide-scale business endeavour requires

e. Budget

Project management helps keep projects on budget. A good project management plan

identifies anticipated costs early on to develop a realistic budget. Using resource conflict

solutions, project managers can minimize the effect of funding a new project on operating

capital by optimizing the allocation of workers. Coordinating tasks and clearly identifying

goals or deliverables within phases reduces inefficiencies in time management that can result

in being over-budget.

Characteristics of a project

1. Specific Objectives: The three generic objectives of a project are

a) Time-determined by the schedule of activities

b) Cost-determined by the budget

c) Quality-determined by the specification of customers

Projects should meet the requirements/specifications of the stakeholders. Stakeholders

include:-beneficiaries, financiers, implementers, victims of the project. (For example

Titanium in Kwale- if mining activities has to displace some people)

2. Limited Life Span i.e. it is temporal

3. Single Entity i.e. it is a stand-alone. It comes up to specific product.

4. Relies on Teamwork: Implemented by teams

5. Follows a Specific Life Cycle

6. Unique i.e. no two projects are the same. Even when undertaking a similar project, the

achieve project provides a template.

7. Keep Changing i.e. projects keep changing depending on circumstances. Thus they must

be adaptable.

8. Projects Are Made To Order: Unlike operations where one produces and then look 4

customers.

9. Have High Level of Risk and Uncertainty

According to the Project Management Institute (PMI), the term project stakeholder refers

to, ‗an individual, group, or organization, who may affect, be affected by, or perceive itself to

be affected by a decision, activity, or outcome of a project‘ (Project Management Institute,

2013).

Project stakeholders are entities that have an interest in a given project. These stakeholders

may be inside or outside an organization which:

1. sponsor a project, or

2. have an interest or a gain upon a successful completion of a project;

3. May have a positive or negative influence in the project completion.

The following are examples of project stakeholders:

• Project leader
• Project team members
• Senior management
• Project customer
• Resource Managers
• Line Managers
• Product user group
• Project testers
• Any group impacted by the project as it progresses
• Any group impacted by the project when it is completed
• Subcontractors to the project
• Consultants to the project