German Jordanian University

School of Management and Logistic Sciences

Management Sciences Department

Course:
Project Management MGT328

Chapter 1: What is a Project?

Lecturer:
Omar M. Bwaliez
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 Ch.1: What is a Project?

In This Chapter:
1.1 Overview.
1.2 What is a Project?
1.2.1 Project and Nonproject.
1.2.2 Project and Process.
1.2.3 Project Hierarchical Terms.
1.3 Project Stakeholders.
1.3.1 Internal Stakeholders.
1.3.2 External Stakeholders.
1.4 Project Constraints.
1.5 Project Life Cycle.
1.6 Projects In The Organizational Structure.
1.6.1 Functional Organization.
1.6.2 Projectized Organization.
1.6.3 Matrix Organization.
1.7 Project Selection.
1.8 End-of-Chapter Quiz.

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 Ch.1: What is a Project?

1.1 Overview:
Companies face international competition in all over the world. conventional
wisdom says that a company could compete using three goals. These goals are called
the three goals for competitive model, they are:
1. A low-cost strategy (i.e., maintaining competitive cost and operating levels).
2. Product innovation (i.e., modifying and introducing products constantly).
3. Focus on customer service (i.e., responding to customers as fast as possible).

Companies such as General Electric, Nokia, Ericksson, Boeing, and Oracle

seemed to be successful in every goal of the competitive model. If we study these
companies, we will note that they share at least one characteristic: They had
developed and committed themselves to project management as a competitive tool.

Conclusion: Project Management is one of the most popular competitive tools

for organizations.

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 Ch.1: What is a Project?
Projects or Non-
projects?

Going to the Manufacturing

Winning a presidential election moon line

Introducing Windows 7
Making a Report or Survey Building Burj
Dubai
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 Ch.1: What is a Project?

1.2 What is a Project?

Definition of a Project:
Project [*] is a temporary endeavor undertaken to create a unique product,
service, or result.
Notes:
 This definition is created by the Project Management Institute’s Project Management Body of
Knowledge (PMBOK®).
 The Project Management Institute (PMI®) is the world’s largest professional project management
association.
 “Temporary” means that the project has a definite beginning and end.
 A “result” can be an outcome, report, 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).
 Any unique and verifiable product, service, or result that must be produced to complete a
process, phase, or project is called deliverable.
___________________
*We will refer to the PMBOK guide frequently throughout this course and use the icon [] to draw the
student’s attention to this important reference.
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 Ch.1: What is a Project?

1.2.1 Project and Nonproject:

Examples of projects:
1. Building a bridge.
2. Splitting the atom.
3. Introducing Windows 7.
4. Planning the next Olympic Games in London.
5. Implementing a new accounts receivable system.
6. Winning a presidential election.
 All these are projects because they are a one-time events, having a beginning and an end, to create a unique product,
service, or result.

Examples of nonprojects:
1. Using a manufacturing line to produce a flow of standard products.
2. Producing weekly employment reports.
3. Preparing school lunches.
4. The delivery of mail.
5. The flight of an airplane from Amman to Dubai.
6. Checking your e-mail.
 All these are nonprojects because they are routine tasks. They are performed over and over again.

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 Ch.1: What is a Project?

1.2.2 Project and Process:

We must recognize that projects are distinct from other organizational processes.

Processes & Projects

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 Ch.1: What is a Project?

1.2.2 Project and Process:

The following table compare between a process and a project.

No. Process Project

1 Repeat process or product. New process or product.

2 Several objectives. One objective.

3 Ongoing. One shot-limited life.

4 People are homogenous. People are heterogeneous.

Well-established systems in place to Systems must be created to integrate

5
integrate efforts. efforts.
Greater certainty of performance, Greater uncertainty of performance,
6
cost, schedule. cost, schedule.

7 Part of line organization. Outside of line organization.

8 Bastions of established practice. Violates established practice.

9 Supports status quo. Upsets status quo.

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 Ch.1: What is a Project?

1.2.3 Project Hierarchical Terms:

In discussions of projects, it is sometimes useful to make a
distinction between terms such as:
 Program [] is a group of related projects managed in a
coordinated way to obtain benefits and control not available from
managing them individually. Programs may include elements of related
work outside of the scope of the discrete projects in the program.
 Portfolio [] is a collection of projects or programs and other
work that are grouped together to facilitate effective management of
that work to meet strategic business objectives. The projects or
programs of the portfolio may not necessarily be interdependent or
directly related, they have varying characteristics.
 Project is a group of interrelated activities.
 Activity is a specific task or a group of tasks that are required by
the project.
 Task is a group of work packages.
 Work Package is a group of work units.
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