Project and project management definition
Motivation of studying PM
Advantages of using formal PM
Triple Constraint of PM
Project Management Framework
9 Project Management Knowledge Areas
Project Management Profession
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Chapter 1:Introduction to Project Managementadopted from PMI’s PMBOK 2000 and Textbook : Information Technology Project Management (author : Dr. Kathy Schwalbe)1Copyright Course Technology 2001ContentsProject and project management definitionMotivation of studying PMAdvantages of using formal PMTriple Constraint of PMProject Management Framework9 Project Management Knowledge AreasProject Management Profession2Copyright Course Technology 2001What is a Project?A project is a temporary endeavor undertaken to accomplish a unique purposeAttributes of projectsunique purposetemporaryrequire resources, often from various areasshould have a primary sponsor and/or customerinvolve uncertainty3Copyright Course Technology 2001Examples of IT ProjectsNorthwest Airlines developed a new reservation system called ResNet (see chapters 11-16)Many organizations upgrade hardware, software, and networks via projects (see chapter 5 opening and closing case)Organizations develop new software or enhance existing systems to perform many business functions (see examples throughout the text)Note: “IT projects” refers to projects involving hardware, software, and networks4Copyright Course Technology 2001IT Projects have a terrible track recordA 1995 Standish Group study (CHAOS) found that only 16.2% of IT projects were successful and over 31% were canceled before completion, costing over $81 B in the U.S. aloneThe need for IT projects keeps increasingIn 1998, corporate America issued 200,000 new-start application development projectsIn 2000, there were 300,000 new IT projects, andIn 2001, over 500,000 new IT projects were startedMotivation for Studying Information Technology (IT) Project Management5Copyright Course Technology 2001Advantages of Using Formal Project ManagementBetter control of financial, physical, and human resourcesImproved customer relationsShorter development timesLower costsHigher quality and increased reliabilityHigher profit marginsImproved productivityBetter internal coordinationHigher worker morale6Copyright Course Technology 2001The Triple ConstraintEvery project is constrained in different ways by itsScope goals: What is the project trying to accomplish?Time goals: How long should it take to complete?Cost goals: What should it cost?It is the project manager’s duty to balance these three often competing goals7Copyright Course Technology 2001Figure 1-1. The Triple Constraint of Project Management8Copyright Course Technology 2001Problems of poor project managementThe 2001 Standish Group Report Showed Decided Improvement in IT Project Success Rates From the 1995 StudyTime overruns significantly decreased to 63% compared to 222%Cost overruns were down to 45% compared to 189%Required features and functions were up to 67% compared to 61%78,000 U.S. projects were successful compared to 28,00028% of IT projects succeeded compared to 16%9Copyright Course Technology 2001Why the Improvements? "The reasons for the increase in successful projects vary. First, the average cost of a project has been more than cut in half. Better tools have been created to monitor and control progress and better skilled project managers with better management processes are being used. The fact that there are processes is significant in itself.“* The Standish Group, "CHAOS 2001: A Recipe for Success" (2001)10Copyright Course Technology 2001What is Project Management? Project management is “the application of knowledge, skills, tools, and techniques to project activities in order to meet project requirements” (PMI*, Project Management Body of Knowledge (PMBOK Guide), 2000, p. 6)*The Project Management Institute (PMI) is an international professional society. Their web site is www.pmi.org. 11Copyright Course Technology 2001Figure 1-2. Project Management Framework12Copyright Course Technology 2001Project StakeholdersStakeholders are the people involved in or affected by project activitiesStakeholders includethe project sponsor and project teamsupport staffcustomersuserssuppliersopponents to the project13Copyright Course Technology 20019 Project Management Knowledge AreasKnowledge areas describe the key competencies that project managers must develop4 core knowledge areas lead to specific project objectives (scope, time, cost, and quality)4 facilitating knowledge areas are the means through which the project objectives are achieved (human resources, communication, risk, and procurement management1 knowledge area (project integration management) affects and is affected by all of the other knowledge areas14Copyright Course Technology 2001Project Management Tools and TechniquesProject management tools and techniques assist project managers and their teams in various aspects of project managementSome specific ones includeProject Charter and WBS (scope)Gantt charts, network diagrams, critical path analysis, critical chain scheduling (time)Cost estimates and earned value management (cost)15Copyright Course Technology 2001Sample WBS for Intranet Project in Chart Form16Copyright Course Technology 2001Figure 1-4. Sample Gantt ChartThe WBS is on the left, and each task’s start and finish dateare shown on the right using a calendar timescale.17Copyright Course Technology 2001Figure 1-5. Sample Network Diagram Each box is a project task from the WBS. Arrows show dependenciesbetween tasks. The bolded tasks are on the critical path. If any tasks on the critical path take longer than planned, the whole project will slip unless something is done.18Copyright Course Technology 2001Sample Earned Value Chart 19Copyright Course Technology 2001More Advantages of Project Management*Bosses, customers, and other stakeholders do not like surprisesGood project management (PM) provides assurance and reduces riskPM provides the tools and environment to plan, monitor, track, and manage schedules, resources, costs, and quality PM provides a history or metrics base for future planning as well as good documentationProject members learn and grow by working in a cross-functional team environment*Knutson, Joan, PM Network, December 1997, p. 1320Copyright Course Technology 2001How Project Management (PM) Relates to Other DisciplinesMuch of the knowledge needed to manage projects is unique to PMHowever, project managers must also have knowledge and experience ingeneral managementthe application area of the projectProject managers must focus on meeting specific project objectives21Copyright Course Technology 2001Figure 1-3. Project Management and Other Disciplines22Copyright Course Technology 2001History of Project ManagementModern project management began with the Manhattan Project, which the U.S. military led to develop the atomic bombIn 1917 Henry Gantt developed the Gantt chart as a tool for scheduling work in job shopsIn 1958, the Navy developed PERT chartsIn the 1970s, the military began using project management software, as did the construction industryBy the 1990s, virtually every industry was using some form of project management23Copyright Course Technology 2001The Project Management ProfessionA 1996 Fortune article called project management the “number one career choice”Professional societies like the Project Management Institute (PMI) have grown tremendouslyAverage salaries for project managers are over $81,00024Copyright Course Technology 2001Project Management Knowledge Continues to Grow and MaturePMI hosted their first research conference in June 2000 in Paris, FranceThe PMBOK Guide – 2000 Edition is an ANSI standardPMI’s certification department earned ISO 9000 certificationHundreds of new books, articles, and presentations related to project management have been written in recent years25Copyright Course Technology 2001Project Management CertificationPMI provides certification as a Project Management Professional (PMP)A PMP has documented sufficient project experience, agreed to follow a code of ethics, and passed the PMP examThe number of people earning PMP certification is increasing quicklyPMI and other organizations are offering new certification programs (see Appendix B)26Copyright Course Technology 2001Figure 1-6. Growth in PMP Certification, 1993-200027Copyright Course Technology 2001Project Management SoftwareBy 2001, there were hundreds of different products to assist in performing project managementThree main categories of tools:Low-end tools: Handle single or smaller projects well, cost under $200 per userMidrange tools: Handle multiple projects and users, cost $200-500 per user, Project 2000 most popularHigh-end tools: Also called enterprise project management software, often licensed on a per-user basis28Copyright Course Technology 2001You Can Apply Project Management to Many AreasProject management applies to work as well as personal projectsProject management applies to many different disciplines (IT, construction, finance, sports, event planning, etc.)Project management skills can help in everyday life29Copyright Course Technology 2001SummaryProject and project management definitionunique purpose, temporary, require resources, sponsor support and involve uncertaintyMotivation of studying PMIT Projects have a terrible track recordThe need for IT projects keeps increasingAdvantages of using formal PMBetter control of resources (financial, physical, and human)Improved customer relationsShorter development timesLower costsHigher quality Increased reliabilityHigher profit marginsImproved productivityBetter internal coordinationHigher worker morale30Copyright Course Technology 2001Summary (2)Triple Constraint of PMtime, costs and scopeProject Management Frameworkstakeholder input => 9 PM knowledge areas => other tools and techniques => success project9 Project Management Knowledge Areascore: scope, time, cost, qualityfacilitating: HR, communication, risk, procurementintegration Project Management Profession31Copyright Course Technology 2001