Individual exercise

An example of your project implemented by

you or in collaboration with other people?
• Its objective(s)? Why to do it?
• Successful or not? How to measure its
success?
• Lessons learned?
 Tritec Engine Joint Venture
• Its objective(s)?
• Its rationale?
• Challenges in implementing this project.
 Course objectives

The course aims to provide:

• Understanding on the concepts of project planning and organization, project control and
project communications.

• Understanding on the stages of a project from initiation to termination.

• Analytical skills for successful project management.

• Insights into human behavior and people skills for project management.

• Project scheduling techniques including WBS, PERT,

Gantt Charts.

• Use of Project Management Software Ms Project.

 Class Structure

• Lecture
• In-class exercises
• Case Discussion
• Group Presentation
 Teaching Method
• Read the assigned chapter, cases and answer
the questions to the cases before class;
• Do your homework;
• Interactive;
• Company/Video Cases.
• Software use
 Course Grading
• Quizzes and Assignments (20%). The quiz contents are related to chapter
homework problems and/or case studies. Case study questions are posted
in the Blackboard one week before the class for the case study. Groups of
maximum 5 students will be formed to discuss special cases or topics
given in class.

•  Class contribution (10%). This reflects the professionalism of your

conduct (attendance, punctuality, preparedness for homework problems)
and your contributions in class (frequency and quality of your
contributions in classes). For an excused absence from a class, you must
submit all homework problems for the missing class. For an unexcused
absence from a class, you will get zero point for participation in that
missing class.
 Exams
• Mid-term Exam (30%)
– The midterm test will be one and half hours in length and will be in
the form of open questions/problems. This is open-book test.
• Final Exam (40%)
– The final test will be 2 hours in length during Final Exam Period and
will be in the form of open questions/problems. This is open-book
test.
Notice:
If a student attends less than 80% of scheduled classes, she or he may be
refused final assessment.
 Course Readings
• Textbook: Meredith, J. and Mantel Jr, S. (2012), Project
Management: A Managerial Approach, 8th edition, Wiley.

• References: A Guide to the Project Management Body of

Knowledge, 3rd Edition (PMBOK Guide), Project Management
Institute, November 2004.
• Mantel, S. J., Meredith, J. R., & Shafer, S. M. (2013). Project
management in practice, 5th edition. Wiley Global Education.
• Additional materials, cases on Blackboard.
 Session 1

Basic Concepts of
Project Management
 Agenda

• Definition of “project”
• Critical project objectives
• Project management – approach and
rationale
• Project life cycle
• Risks associated with projects
 Required Reading

• Chapter 1, Textbook, Meredith and Mantel

– Focus: Lessons for an Accidental Profession
 Learning Objectives
• Explain major characteristics of a project
• Discuss the difference between project and
functional department/business plan
• Appreciate the rationale of project
organization
• Explain what project management is and
when it is needed
• Identify stages of project life cycle and risks
associated
 1. Definition of “project”
• A temporary endeavor undertaken to create a unique
product or service. Temporary means that the project has
an end date. Unique means that the project's result is
different from the results of other functions of the
organization (PMI, 2001)
or
• A complex effort, made up of interrelated tasks,
performed by various organizations, to be completed
within a limited time frame, with a well defined set of
objectives, schedule and budget. (Archibald, 1976)
 1. Definition of “project”

• “A unique set of activities meant to produce a defined

outcome within an established time framing specific
allocation of resources.” (Harvard Business Review)
 Some Other Definitions
• A project is a temporary process, which has a clearly defined start and end
time, a set of tasks, and a budget, that is developed to accomplish a well-
defined goal or objective
• A project is a temporary effort of sequential activities designed to
accomplish a unique purpose
• A project is a group of inter-related activities, constrained by time, cost,
and scope, designed to deliver a unique purpose
• An undertaking that encompasses a set of tasks or activities having a
definable starting point and well defined objectives. Usually each task has
a planned completion data (due date) and assigned resources
• A clear set of activities with related inputs and outputs aimed to achieve
objectives and goals linked to anticipated (desired) effects and impacts in
a target population (sometimes called ‘beneficiaries’) (collected by Project
Management for Development Organizations)
 Common grounds

• A project has a beginning and an end

• A project has limited resources
• A project follows a planned, organized
method to meet its objectives with specific
goals of quality and performance.
• Every project is unique
• (A project has a manager responsible for its
outcomes)
 What a project isn’t

• Explorations
• Go on indefinitely
• One team or one person working alone
• Creating the same thing multiple times
• No constraint of time, cost, or
performance
 Examples of Projects

• Development of Boeing 787

• HEPR projects in developing countries
• The East-West highway
• Open up a new canteen for IU students
 Discussion
• What is the difference between Projects and
Processes?
 Discussion
• What is the difference between Projects and
Processes?

– Different objectives
– Different criteria for success
 Project vs. Program, Task

• In discussion of project management

sometimes it is useful to make a distinction
between Project, Program and Task.
– Program: A long-term undertaking which is
usually made up of similar projects.

– Task: A short term effort (few weeks to few

months) performed by one organization, which
may combine with other tasks to form a project.
 Project’s Characteristics

Complexity
Project’s subtasks have a high degree of
interdependencies (a given task depends on
the completion of other assignments in other
functional areas, and it will in turn affect the
cost or timing of subsequent tasks) and
therefore require careful co-ordination and
control in terms of timing, precedence, cost
and performance.
Uniqueness
Every project has some elements that are
unique (no familiarity, no precedence due
to customization requirement, risks, etc.).
Projects by their nature can not be
completely reduced to routine.
Limited lifetime with common phases.
Projects are complex efforts that start and end.
Most projects go through similar phases on the
path from origin to completion: Initiation
(Concept), Development, Implementation, and
Termination
Knowledge Check

To be deemed a “project” your activity must have the

following characteristics?

A.An official start and end date

B.An outcome that provides a benefit or value

C.Requires an allocation of resources

D.All of the above

Knowledge Check

To be deemed a “project” your activity must have the

following characteristics?

Answer:

D. All of the above

 2. Critical Project Objectives

Sometimes called “constraints”

• Cost (budget limit)
• Time (schedule)
• Performance (scope)

• Quality
 Scope

• It is what the project is trying to achieve

• It is the reason and the purpose of the
project.
• It is the boundary of a project
• It is what the beneficiaries, and the donors
expect from the project.
 Budget

• The costs approved for the project including all required

expenses needed in order to deliver the project.
• Managers have to balance between not running out of
money and not under spending, because many projects
receive funds or grants that have contract clauses with a
‘use it or lose it’ approach to project funds.
• Poorly executed budget plans can result in a last minute
rush to spend the allocated funds.
 Schedule
• The time required to complete the project
• Often the most frequent project oversight in developing
projects.
• This is reflected in missed deadlines, incomplete
activities, and late donor reports.
• Proper control of the schedule requires
– the careful identification of tasks to be performed,
– an accurate estimation of their durations,
– the sequence in which they are going to be done,
– and how people and resources are allocated.
 Project objectives achieved

• A project is deemed successful when it

achieves objectives of all four dimensions
• Failure in any of them has an impact in the
others, a delay in a project has an impact on
its cost, and an increase in scope has an
impact in both time and budget.
• Trade-offs have to be considered
continuously.
 Example

• Building your own house

– Time: 4.5 months, before the rainy season
– Budget: not over VND 750 mil.
– Scope: As per architect’s blueprint specifications
– Quality: Satisfy your whole family members, no
frictions with neighbors, no actions from housing
development agency…
• “Rise Above” music project – NTV return
– Trade-offs, and your own examples
 Exercise

• Imagine a project of your interest

(individual, community, business, etc)
• Why should it be called a project?
• What are its three objectives?
 3. Project Management

• “Project management is the application of knowledge,

skills, tools, and techniques to a broad range of activities
in order to meet the requirements of a particular project”
(PMI, 2000)
• “Unique process consisting of a set of coordinated and
controlled activities with start and finish dates,
undertaken to achieve an objective conforming to
specific requirements, including constraints of time, cost
and resources” (ISO 10006)
• “a temporary organization that is needed
to produce a unique and predefined
outcome or result at a pre-specified time
using predetermined resources” (PRINCE2
- UK)
 But Why? The Forces
• Skills and knowledge specification, knowledge
explosion

• Demands for more complex and customized

goods and services, increased customer focus,
compressed product life cycle

• Evolution of larger and more sophisticated

markets, global competition
 Challenge of Project
Management
• Managing temporary, non-repetitive
activities and often acting independent of
the organization

• Getting right people, right time to address

the right issues and make the right
decisions
Advantages of Project Management

• Better control of financial, physical, and human resources

• Improved customer relations
• Shorter development times
• Lower costs
• Higher quality and increased reliability
• Higher profit margins
• Improved productivity
• Better internal coordination
 Major Activities of Project
Management (Process)
• Project initiation, selection and definition
• Project organization
• Analysis of activities
• Project scheduling
• Resource management
• Technological management
• Project budgeting
• Project execution and control
• Project termination
Project Management Framework
Time
Time Cost
Cost Scope
Scope
Management
Management Management
Management Management
Management

Quality
Quality Integration
Integration HR
HRManagement
Management
Management
Management Management
Management

Risk
Risk Communication
Communication Procurement
Procurement
Management
Management Management
Management Management
Management
 The Areas

• Core Functions – addressing the

constraints
• Facilitating Processes
• Integration Management – pulling things
together
 Tools for Project Management

• Quantitative techniques
– Economic analysis and appraisal
– Planning and scheduling
– Budgeting and resource management
– Cost/schedule control
– Risk analysis
– Project financing
 Tools for Project Management

• Behavioral techniques
– Conflict management
– Decision making and problem solving
– Team building
– Leadership
 Technical skills People Skills

Budgeting, Scheduling, Leading, Motivating,

Documenting Listening, Empathising

 Which ones are most important for projects?

 When Project Management?

Size of the undertaking

When an undertaking requires substantially
more resources than are normally
employed in the business, project
techniques may be indicated.
 When Project Management?

Unfamiliarity
Unique opportunities or problems are generally
project-oriented. For instance, for the
acquisition of another company, project
management techniques helped to reduce the
time consuming and complicated process of
integrating the two companies without
interrupting business as usual.
 When Project Management?

Market change
Many firms operate in a turbulent market
characterized by rapid technological
innovations, rapid changes in the values and
behaviours of customers and competitors.
These market conditions require an
organizational approach that permits flexibility
in the use of resources.
 When Project Management?

Interdependence
If an effort calls for many functionally separated
activities to be pulled together and if these
activities are so closely related that moving
one affects the others, project techniques are
needed.
 When Project Management?

Resource sharing
Project management makes sense when there
are critical or scarce resources, certain types of
professional skills are in short supply, or when
it is difficult to keep a professional work force
fully and effective employed.
 When Project Management?

Importance of the effort

Project management is used when the
undertaking is important to the organization
and managers might not want to place it in the
bureaucracy of the organization, where it
might become lost in the daily operational
workings.
 4. Project Life Cycle

• Similar stages from origin to completion

– Conception
– Selection
– Planning
– Scheduling
– Monitoring/control
– Evaluation
– Termination
Slow – Rapid – Slow
Slow – Rapid – Slow pattern
Estimate of Project Cost
Risk During Project Life Cycle
End of Session 1