Introduction

To Project
Management
Chapter 1
 After completing this chapter, you
should be able to:
1. Understand why project
management is becoming such a
powerful and popular practice in
business.
2. Recognize the basic properties of
projects, including their
Chapter 1 definition.
Understand why effective project
Learning 3.
management is such a challenge.

Objectives 4. Differentiate between project

management practices and more
traditional, process-oriented
business functions.
5. Recognize the key motivators
that are pushing companies to
adopt project management
practices.
 After completing this chapter, you
should be able to:
6.Understand and explain the project
life cycle, its stages, and the
activities that typically occur at each
stage in the project.
7.Understand the concept of project
Chapter 1 “success,” including various definitions
of success, as well as the alternative
Learning models of success.
8.Understand the purpose of project
Objectives management maturity models and the
process of benchmarking in
organizations.
9.Identifythe relevant maturity stages
that organizations go through to
become proficient in their use of
project management techniques.
What is a Project?
 Projects are complex, one-time
processes.
 Projects are limited by budget,
schedule, and resources.
 Projects are developed to resolve a
clear goal or set of goals.
 Projects are customer-focused.

A project is a temporary endeavor undertaken to

create a unique product, service, or result.
 Projects are ad hoc endeavors with a clear
life cycle.

Projects are building blocks in the design

and execution of organizational strategies.

General Projects are responsible for the newest and

project most improved products, services, and
organizational processes.

characteristics
Projects provide a philosophy and strategy
for the management of change.

Project management entails crossing

functional and organizational boundaries.
 Traditional management
functions of planning,
organizing, motivation,
directing, and control apply to
project management.

General Principal outcomes of a project

are the satisfaction of customer
project requirements within the
constraints of technical, cost,
and schedule objectives.
characteristics

Projects are terminated upon

successful completion of
performance objectives.
 Differences Between Process and
Project Management

PROCESS PROJECT
 Repeat process or product  New process or product
 Several objectives
 One objective
 One-shot-limited life
 Ongoing
 More heterogeneous
 People are homogenous  Integrated system efforts
 Well-established systems  Greater uncertainty
 Greater certainty  Outside of line organization
 Part line organization
 Violates established practice
 Upsets status quo
 Established practices
 Supports status quo
 Software & hardware Over half of all IT
projects fail at a 65% projects become
rate. runaways.

Project Only 30% of technology-

Ten major government
contracts have over $16
Success based projects and
programs are a success.
billion in cost overruns
and are a combined 38
years behind schedule.
Rates
More than $8 billion of
Only 2.5% of global
$53 billion the
businesses achieve 100%
Pentagon spent on Iraqi
project success and
reconstruction projects
over 50% of global
was lost due to fraud,
business projects fail.
waste, and abuse.
 Shortened product life cycles

Narrow product launch windows

Why are
Increasingly complex and technical
projects products

important?
Emergence of global markets

An economic period marked by low

inflation
PROJECT LIFE CYCLES
 A project life cycle refers to the stages in a
project’s development and are divided into four
distinct phases:

Conceptualization – development of the initial

goal and technical specifications of the project.
Key stakeholders are identified and signed on at
this phase.

Project Planning – all detailed specifications, schedules,

schematics, and plans are developed.

Life Cycles
Execution – the actual “work” of the project is
performed.

Termination – project is transferred to the

customer, resources reassigned, project is closed
out.
 Change during project life cycle

Client
Interest

Project
Stake

Resources

Creativity

Uncertainty
Project life cycle and their effects
Quadruple constraint of project
success
Four dimension of project success
Understanding success criteria
Six criteria for it project success

System Information
Use
Quality Quality

User Individual Organizational

Satisfaction Impact Impact
 Project management maturity
(PMM) models are used to allow
organizations to benchmark the
best practices of successful
Project project management firms.

management
maturity Benchmarking is the practice of
systematically managing the
process improvements of project
delivery by a single organization
of a period of time.
Spider web diagram
Spider web with embedded organizational
evaluation
Project Management Maturity Generic
Model
 Project Management Maturity
(PMM) Models
Center for Business
Developing 
Practices

Project  Kerzner’s Project

Management Maturity
Management Model

Maturity  ESI International’s Project

Framework
 SEI’s Capability Maturity
Model Integration
 Level 1: Initial Phase

Level 2: Structure, Process, and

Center for Standards

Business Level 3: Institutionalized Project

Management
Practices
PMM Level 4: Managed

Level 5: Optimizing
 Level 1: Common Language

Level 2: Common Processes

KERZNER’S
PMM Level 3: Singular Methodology

MODEL
Level 4: Benchmarking

Level 5: Continuous Improvement

 Level 1: Ad Hoc

Level 2: Consistent

ESI
INTERNATIONAL’S Level 3: Integrated
PROJECT
FRAMEWORK
Level 4: Comprehensive

Level 5: Optimizing
 Level 1: Initial

Level 2: Managed
SEI’S
CAPABILITY
MATURITY Level 3: Defined

MODEL
INTEGRATION Level 4: Quantitative Management

Level 5: Optimizing
Project Elements and Text Organization
(Figure 1.11)
 Selecting a team

Developing project objectives and a

plan for execution

Performing risk management

Project activities
Manager
Cost estimating and budgeting
Responsibilities

Scheduling

Managing resources