Project Management:

A Managerial Approach

By Jack R. Meredith and Samuel J. Mantel, Jr.

Published by John Wiley & Sons, Inc.

Presentation prepared by RTBM Web Group

Some Preliminaries
What is Project
 Project is temporary in that it has defined
beginning and end in time and therefore
defined scope and resources.
 Project is unique in that it is not routine
operation, but specific set of operations
designed to accomplish a goal.
 A specific, finite activity that produces an
observable and measurable results under
the certain present requirements.
What is Project Management

 PM is the application of the processes,

methods, skills and knowledge and
experience to achieve specific project
objectives according to the project
acceptance criteria within agreed
parameters.
Project Management

Project management is the application

of processes, methods, knowledge,
skills and experience to achieve the
project objectives
Project Management Process

 Initiation
 Planning
 Execution
 Monitoring and Controlling
 Closing
PM Areas
 Integration
 Scope
 Time
 Cost
 Quality
 Procurement
 HR
 Communication
 Risk Management
 Stakeholders Management
Project Types
 What is Project Appraisal
 Project appraisal is the process of assessing, in a structured
way, the case for proceeding with a project or proposal, or
the project's viability. It often involves comparing various
options, using economic appraisal or some other decision
analysis technique.

 Project appraisal is the structured process of assessing the

viability of a project or proposal. It involves calculating the
feasibility of the project before committing resources to it.
It is a tool that company's use for choosing the
best project that would help them to attain their goal.
Project Appraisal Methods

 Quantitative Methods
 Qualitative Methods
 Mixed Methods
Project Management
A Managerial Approach

Chapter 1

Projects in Contemporary
Organizations
Projects in Contemporary
Organizations

 Project Management has emerged

because the characteristics of our turn-of-
the-century society demands the
development of new methods of
management
 Many forces have fostered the emergence
and expansion of Project Management
Chapter 1-1
Forces Of Project
Management
 3 Paramount Forces driving Project
Management:
 1. The exponential expansion of human knowledge
 2. The growing demand for a broad range of complex,
sophisticated, customized goods and services
 3. The evolution of worldwide competitive markets for the
production and consumption of goods and services
 All 3 forces combine to mandate the use of
teams to solve problems that used to be
solvable by individuals
Chapter 1-2
Objectives of a Project
 3 Project Objectives: (Direct PO or PG)
 Performance
 Time
 Cost
 Expectations of clients are not an
additional target, but an inherent part of
the project specifications

Chapter 1-3
Objectives of a Project

 3 Project Objectives:

Chapter 1-4
Project Success

 4-Dimensions
 1. Project efficiency
 2. Impact on the customer,
 3. The business impact on the
organization,
 4. Opening new opportunities for the
future
The Project Manager

 Manage the trade-offs

 Integrate all aspects of the project
 Ensure the proper knowledge and
resources are available
 Ensure that the expected results are
produced in a timely, cost-effective
manner.
 Meet stakeholders requirements
The Professionalism of Project
Management & PM Role
 Complexity of problems facing the project manager
 Growth in number of project oriented organizations
 The Project Management Institute (PMI) was established in 1969
 By 1990 it had 7,500 members
 5 years later, over 17,000 members
 And by 1998, it had exploded to over 44,000 members
 This exponential growth is indicative of the rapid growth
in the use of projects
 Also reflects the importance of PMI as a force in the
development of project management as a profession

Chapter 1-5
Project Management
Institute

Chapter 1-6
Trends in Project Management

 Achieving Strategic Goals(Strategy & Mission)

 Achieving Routine Goals

 Improving Project Effectiveness (PMO)

 Virtual Projects
 Quasi-Projects
Recent Changes in
Managing Organizations
 The process of managing organizations has been impacted
by three revolutionary changes
 1. Accelerating replacement of traditional, hierarchical
management by participatory management (consensual
management.)
 2. Currently witnessing the adoption of the “systems
approach” (sometimes called “systems engineering”)
 3. Organizations establishing projects as the preferred
way to accomplish the many specific changes that must
be made when the organization attempts to alter its
strategy
Chapter 1-7
The Definition of a
“Project”
 “A temporary endeavor undertaken to
create a unique product or service”
 Must make a distinction between terms:
 Program - an exceptionally large, long-range
objective that is broken down into a set of projects
 Task - set of activities comprising a project
 Work Packages - division of tasks
 Work Units - division of work packages

 In the broadest sense, a project is a specific,

finite task to be accomplished
Chapter 1-8
Characteristics of a
Project

 Have a purpose
 Have a life cycle
 Interdependencies
 Uniqueness
 Conflict

Chapter 1-9
Six aspects of the Project
Why Project Management?
 Companies have experienced:
 Better control
 Better customer relations
 Shorter development times
 Lower costs
 Higher quality and reliability
 Higher profit margins
 Sharper orientation toward results
 Better interdepartmental coordination
 Higher worker morale
Chapter 1-10
Why Project Management?
 Companies have also experienced some
negatives:
 Greater organizational complexity
 Increased likelihood of organizational policy
violations
 Higher costs
 More management difficulties
 Low personnel utilization
Chapter 1-11
The Project Life Cycle

 Stages of a Conventional Project:

 Slow beginning
 Buildup of size
 Peak
 Begin a decline
 Termination

Chapter 1-12
The Project Life Cycle

Chapter 1-13
The Project Life Cycle
 Time distribution of project effort is characterized by
slow-rapid-slow

Chapter 1-14
The Project Life Cycle

 Other projects also exist which do not

follow the conventional project life cycle
 These projects are comprised of subunits
that have little use as a stand alone unit,
yet become useful when put together

Chapter 1-15
The Project Life Cycle
 Unlike the more conventional life cycle, continued inputs of effort at
the end of the project produce significant gains in returns

Chapter 1-16
The Project Life Cycle

 It is essential for the Project Manager to

understand the characteristics of the life
cycle curve for his project

 The distinction between the two life cycles

plays a critical role in the development of
budgets and schedules for the project
Chapter 1-17
The Project Life Cycle

 Risk during project life cycle

 With most projects there is some uncertainty
about the ability to meet project goals
 Uncertainty of outcome is greatest at the
start of a project
 Uncertainty decreases as the project moves
toward completion

Chapter 1-18
Risk During Project Life
Cycle
 Uncertainty decreases as the project moves toward
completion

Chapter 1-19
Textbook Structure

 Structure of the text follows the life cycle

of projects
 Text divided into 3 main sections:
 Part I - Project Initiation
 Part II - Project Implementation
 Part III - Project Termination

Chapter 1-20
Summary

 The Project Management Institute (PMI) was

founded in 1969 to foster the growth and
professionalism of project management

 Project management is now being recognized as

a valuable “career path” in many organizations,
as well as a way to gain valuable experience
within the organization

Chapter 1-21
Summary

 The three primary forces behind project

management are:
 1. The growing demand for complex,
customized goods and services
 2. The exponential expansion of human
knowledge
 3. The global production-consumption
environment

Chapter 1-22
Summary
 The three prime objectives of project
management are:
 1. To meet specified performance
 2. To do it within specified costs
 3. Complete on schedule

 Terminology follows in this order:

program, project, task, work package,
work unit
Chapter 1-23
Summary

 Projects are characterized by a singleness

of purpose, a definite life cycle, complex
interdependencies, some or all unique
elements, and an environment of conflict

 Project management, though not

problem-free, is the best way to
accomplish certain goals
Chapter 1-24
Summary

 Projects often start slow, build up speed

while using considerable resources, and
then slow down as completion nears
 This text is organized along the project
life cycle concept:
 Project Initiation (Chapters 2-6)
 Project Implementation (Chapters 7-11)
 Project Termination (Chapters 12-13)
Chapter 1-25
Projects in Contemporary
Organizations

Questions?

Chapter 1-26
Projects in Contemporary
Organizations

Picture Files
Projects in Contemporary
Organizations

Figure 1-1
Projects in Contemporary
Organizations

Figure 1-2
Projects in Contemporary
Organizations

Figure 1-3
Projects in Contemporary
Organizations

Figure 1-4
Projects in Contemporary
Organizations

Figure 1-5
Projects in Contemporary
Organizations

Figure 1-6
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