Chapter 1
Chapter 1
Chapter 1
Text Book:
1. A guide to the Project Management Body of
Knowledge
• Example
– Students will gain an appreciation and
understanding of the value of applying lean
production systems theory to the real world of
project creation.
S.M.A.R.T. Goals are…
• Specific
• Measurable
• Attainable
• Realistic
• Timely
Specific
• Specific goals answer the following questions:
– How much?
– How many?
– How will I know when it is accomplished?
Attainable
• The goal is “do-able”
• It is action-oriented
• It is “within reach” of mortals!
Definition: “create”:
– A product that can be either a component of another item or an
end item in itself,
– A capability to perform a service (e.g., a business function that
supports production or distribution), or
– A result such as an outcome or document (e.g., a research project
that develops knowledge that can be used to determine whether
a trend is present or a new process will benefit society).
What is a project ?
Definition – “unique”
Every project creates a unique product, service, or result.
Why?
Because organizations are open systems. They have to respond
to both internal and external changes
To meet their development agenda
To satisfy customers
To survive
To solve problems and grab opportunities
Motivation for Studying Information
Technology (IT) Project Management
Successful project
management means
meeting all three goals
(scope, time, and cost) –
and satisfying the
project’s sponsor!
Improved Project Performance
The Standish Group’s CHAOS studies show
improvements in IT projects in the past decade.
Example:
For example, if the schedule is shortened, often the budget needs
to be increased to add additional resources to complete the same
amount of work in less time. If a budget increase is not possible,
the scope or quality may be reduced to deliver a product in less
time for the same budget.
What is project management ?
Constraints – Key points
Project stakeholders may have differing ideas as to which factors
are the most important, creating an even greater challenge.
The project team must be able to assess the situation and balance
the demands in order to deliver a successful project.
What is project management ?
Because of the potential for change, the project management plan is
iterative and goes through progressive elaboration throughout the
project’s life cycle.
What is iteration?
From this mix, the firm may choose to manage related projects as
one program. All of the power projects may be grouped together as a
power program. Similarly, all of the water projects may be grouped
together as a water program.
Relationships B/W Project, Program, &
Portfolio Mgt.
What is portfolio management?
It refers to the centralized management of one or more portfolios.
Key Points:
Programs may include elements of related work outside the scope of
the discrete projects in the program.
A project may or may not be part of a program but a program will
always have projects.
Relationships B/W Project, Program, &
Portfolio Mgt.
Definition of ‘Program management’
Program management is defined as the
centralized coordinated management of a program to
achieve the program’s strategic objectives and benefits.
Key Point:
Projects within a program are related through the
common outcome or collective capability.
If the relationship between projects is only that of a shared client,
seller, technology, or resource, the effort should be managed as a
portfolio of projects rather than as a program.
Relationships B/W Project, Program, &
Portfolio Mgt.
Focus of Program Management:
It focuses on the project interdependencies and
helps to determine the optimal approach for managing them.
An Example of a Program :
An example of a program would be a
new communications satellite system
with projects for
design of the satellite and of the ground stations,
construction of each,
integration of the system, and
launch of the satellite.
Relationships B/W Project, Program, &
Portfolio Mgt.
Difference in approaches
Projects, programs, and portfolios have different approaches.
Table 1-1
shows the
comparison of project, program, and portfolio views
across several domains including
change,
leadership,
management, and
others.
Relationships B/W Project, Program, &
Portfolio Mgt.
Projects and Strategic Planning
Responsibility of PMO:
The responsibilities of a PMO can range from providing project
management support functions to actually being responsible for the
direct management of a project.
Key Point:
The projects supported or administered by the PMO may not be related,
other than by being managed together.
Relationships B/W Project, Program, &
Portfolio Mgt.
Project Management Office
Key Points:
The specific form, function, and structure of a PMO is dependent
upon the needs of the organization that it supports.
A PMO may be delegated the authority to act as an integral
stakeholder and a key decision maker during the beginning of each
project, to make recommendations, or to terminate projects or take
other actions as required to keep business objectives consistent.
In addition, the PMO may be involved in the selection, management,
and deployment of shared or dedicated project resources.
Relationships B/W Project, Program, &
Portfolio Mgt.
Project Management Office
Primary Function:
To support project managers in a variety of ways which may include, but
are not limited to:
Managing shared resources across all projects administered by PMO
Identifying & developing project mgt. methodology, best practices, &
standards
Coaching, mentoring, training, and oversight;
Monitoring compliance with project management standards, policies,
procedures, and templates via project audits;
Developing and managing project policies, procedures, templates, and
other shared documentation , and
Coordinating communication across projects.
Relationships B/W Project, Program, &
Portfolio Mgt.
Examples:
Production operations, manufacturing operations, and accounting
operations, etc.
Key Points:
Though temporary in nature, projects can help achieve the organizational
goals when they are aligned with the organization’s strategy.
Organizations sometimes change their operations, products, or systems
by creating strategic business initiatives.
PM & OM
Projects require project management while
operations require business process mgt. or operations management.
Projects can intersect with operations at various points during the
product life cycle, such as:
At each closeout phase;
When developing a new product, upgrading a product, or expanding
outputs;
Improvement of operations or the product development process; or
Until the divestment of the operations at the end of the product life
cycle.
PM & OM
Key Points:
At each point, deliverables and knowledge are
transferred between the project and operations
for implementation of the delivered work.
This occurs through a transfer of project resources to operations
toward the end of the project, or through a transfer of operational
resources to the project at the start.
Operations are permanent endeavors that produce repetitive
outputs, with resources assigned to do basically the same set of tasks
according to the standards institutionalized in a product life cycle.
Unlike the ongoing nature of operations,
projects are temporary endeavors.
Project Management Body of Knowledge
The PMBOK Guide is the standard for managing most projects most
of the time across many types of industries.