3. Introduction to Project Management
•3
Introduction
What is a project?
The project management process
Project management information systems
4. Objectives
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Define what project is and describe project management
Understand the history of project management
Understand the growing need for better IT/IS project
management
Discuss key elements of the project management framework
Understand the role of the project manager for information
technology projects.
5. Motivation for Studying Information
Technology (IT) Project Management
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IT projects have a terrible track record.
A 1995 Standish Group study (CHAOS) found that only 16.2 percent
of IT projects were successful in meeting scope, time, and cost goals.
Over 31 percent of IT projects were canceled before completion,
costing over $81 billion in the U.S. alone.*
6. Advantages of Using Formal
Project Management
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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.
Higher worker morale (less stress).
7. What Is a Project?
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A project is “a temporary endeavor undertaken to create a unique product,
service, or result.”*
Operations is work done to sustain the business.
A project ends when its objectives have been reached, or the project has been
terminated.
Projects can be large or small and take a short or long time to complete.
A 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 (Lockyer and Gordon, 1996)
8. Project Attributes
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A project:
A unique process to achieve an objective.
Is temporary.
Is developed using progressive elaboration.
Requires resources, often from various areas.
Should have a primary customer or sponsor.
The project sponsor usually provides the direction and funding for the project.
Involves uncertainty.
Coordinated and controlled activities
Start and finish dates
Specific requirements
Constraints of time, cost and resources
9. Project and Program Managers
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Project managers work with project sponsors, project teams, and
other people involved in projects to meet project goals.
Program: “A group of related projects managed in a coordinated
way to obtain benefits and control not available from managing
them individually.”*
Program managers oversee programs and often act as bosses for
project managers.
10. The Triple Constraint
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Every project is constrained in different ways by its:
Scope goals: What work will be done?
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 goals.
11. Figure 1-1. The Triple Constraint of
Project Management
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Successful project
management means
meeting all three
goals (scope, time,
and cost) – and
satisfying the
project’s sponsor!
12. What is Project Management?
•12
Project management is the application of knowledge, skills,
tools, and techniques to project activities in order to meet
project requirements
A project is a temporary endeavor undertaken to achieve a
particular aim. Project management knowledge and practices
are best described in terms of their component processes
13. History of Project Management
•13
Some people argue that building the Egyptian pyramids was a
project, as was building the Great Wall of China
Most people consider the Manhattan Project to be the first
project to use “modern” project management
This three-year, $2 billion (in 1946 dollars) project had a
separate project manager and a technical manager
14. Project Management Framework
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A set of processes, tools and templates, designed to be used
together to manage a project through its lifecycle
15. Project Stakeholders
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Stakeholders are the people involved in or affected by project
activities.
Stakeholders include:
Project sponsor
Project manager
Project team
Support staff
Customers
Users
Suppliers
Opponents to the project
16. Nine Project Management
Knowledge Areas
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Knowledge areas describe the key competencies that project
managers must develop.
Four core knowledge areas lead to specific project objectives (scope,
time, cost, and quality).
Four facilitating knowledge areas are the means through which the
project objectives are achieved (human resources, communication,
risk, and procurement management).
One knowledge area (project integration management) affects and is
affected by all of the other knowledge areas.
All knowledge areas are important!
17. All Projects Should Have:
Project plan
Time frame
Product specification
Statement of required quality
Budget
Cost plan
Identification of areas of uncertainty
Risk evaluation and responses
18. Project Management Tools and
Techniques
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Project management tools and techniques assist project managers
and their teams in various aspects of project management.
Specific tools and techniques include:
Project charters, scope statements, and WBS (scope).
Gantt charts, network diagrams, critical path analyses, critical chain
scheduling (time).
Cost estimates and earned value management (cost).
See Table 1-1 for other examples.
19. Project Portfolio Management
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Many organizations support an emerging business strategy of
project portfolio management:
Organizations group and manage projects as a portfolio of
investments that contribute to the entire enterprise’s success.
(For more information, see Chapter 7, Project Cost
Management.)
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Improved Project Performance
The Standish Group’s CHAOS studies show
improvements in IT projects in the past decade.*
Measure 1994 Data 2002 Data Result
Successful projects 16% 34% Doubled
Failed projects 31% 15% Halved
Money wasted on
challenged and
failed projects
$140 B out
of $250 B
$55 B out of
$255 B
More than
halved
*The Standish Group, “Latest Standish Group CHAOS Report Shows Project Success Rates
Have Improved by 50%” (March 25, 2003).
21. Why the Improvements?
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“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).
22. Project Success Factors*
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1. Executive support
2. User involvement
3. Experienced project manager
4. Clear business objectives
5. Minimized scope
6. Standard software
infrastructure
7. Firm basic requirements
8. Formal methodology
9. Reliable estimates
10. Other criteria, such as small
milestones, proper planning,
competent staff, and
ownership
*The Standish Group, “Extreme CHAOS” (2001).
23. The Role of the Project Manager
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Job descriptions vary, but most include responsibilities such
as planning, scheduling, coordinating, and working with
people to achieve project goals.
Remember that 97 percent of successful projects were led by
experienced project managers.
24. Fifteen Project Management Job
Functions*
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Define scope of project.
Identify stakeholders, decision-
makers, and escalation procedures.
Develop detailed task list (work
breakdown structures).
Estimate time requirements.
Develop initial project management
flow chart.
Identify required resources and
budget.
Evaluate project requirements.
Identify and evaluate risks.
Prepare contingency plan.
Identify interdependencies.
Identify and track critical milestones.
Participate in project phase review.
Secure needed resources.
Manage the change control process.
Report project status.
*Northwest Center for Emerging Technologies, “Building a Foundation for Tomorrow: Skills Standards
for Information Technology,” Belleview, WA, 1999.
25. Suggested Skills for Project Managers
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Project managers need a wide variety of skills.
They should:
Be comfortable with change.
Understand the organizations they work in and with.
Lead teams to accomplish project goals.
26. Suggested Skills for Project Managers
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Project managers need both “hard” and “soft” skills.
Hard skills include product knowledge and knowing how to use
various project management tools and techniques.
Soft skills include being able to work with various types of
people.
28. Media Snapshot – Good Project
Management Skills from The Apprentice
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Leadership and professionalism
are crucial.
Know what your sponsor
expects from the project, and
learn from your mistakes.
Trust your team and delegate
decisions.
Know the business.
Stand up for yourself.
Be a team player.
Stay organized and don’t be
overly emotional.
Work on projects and for
people you believe in.
Think outside the box.
There is some luck involved in
project management, and you
should always aim high.
29. Table 1-4. Most Significant Characteristics of
Effective and Ineffective Project Managers
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• Leadership by example
• Visionary
• Technically competent
• Decisive
• Good communicator
• Good motivator
• Stands up to upper
management when
necessary
• Supports team members
• Encourages new ideas
• Sets bad example
• Not self-assured
• Lacks technical expertise
• Poor communicator
• Poor motivator
Effective Project Managers Ineffective Project Managers
30. Importance of Leadership Skills
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Effective project managers provide leadership by example.
A leader focuses on long-term goals and big-picture
objectives while inspiring people to reach those goals.
A manager deals with the day-to-day details of meeting
specific goals.
Project managers often take on both leader and manager
roles.
31. Top Ten Most
In-Demand IT Skills
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Rank IT Skill/Job Average Annual Salary
1 SQL Database Analyst $80,664
2 Oracle Database Analyst $87,144
3 C/C++ Programmer $95,829
4 Visual Basic Programmer $76,903
5 E-commerce/Java Developer $89,163
6 Windows NT/2000 Expert $80,639
7 Windows/Java Developert $93,785
8 Security Architect $86,881
9 Project Manager $95,719
10 Network Engineer $82,906
Paul Ziv, “The Top 10 IT Skills in Demand,” Global Knowledge Webcast
(www.globalknowledge.com) (11/20/2002).
32. Figure 1-3. Top Information Technology
Skills
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60% 58%
42% 41%
0%
10%
20%
30%
40%
50%
60%
70%
Application
development
Project management Database
management
Networking
Cosgrove, Lorraine, “January 2004 IT Staffing Update,” CIO Research Reports (February 3, 2004).
Information Technology (IT) Skill
Percentage of
Respondents
33. Figure 1-4. Sample Gantt Chart
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The WBS is shown on the left, and each task’s start and finish dates
are shown on the right. First used in 1917, early Gantt charts were
drawn by hand.
Work Breakdown Structure (WBS)
34. Figure 1-5. Sample Network Diagram
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Each box is a project task from the WBS. Arrows show dependencies
between tasks. The bolded tasks are on the critical path. If any task on
the critical path takes longer to complete than planned, the whole
project will slip unless something is done. Network diagrams were
first used in 1958 on the Navy Polaris project before project
management software was available.
35. Project Management Office (PMO)
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A PMO is an organizational group responsible for coordinating the
project management function throughout an organization.
Possible goals include:
Collect, organize, and integrate project data for the entire organization.
Develop and maintain templates for project documents.
Develop or coordinate training in various project management topics.
Develop and provide a formal career path for project managers.
Provide project management consulting services.
Provide a structure to house project managers while they are acting in those
roles or are between projects.
36. Project Management Software
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Enterprise PM software integrates information from multiple
projects to show the status of active, approved, and future
projects across an entire organization.
It also provides links to more detailed information on each
project.
Many managers like to see status in color – red, yellow, and
green.
37. The Project Management Profession
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Professional societies such as the Project Management Institute
(PMI) have grown significantly.
There are specific interest groups in many areas, such as
engineering, financial services, health care, and IT.
Project management research and certification programs
continue to grow.
38. Project Management Certification
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PMI 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 exam.
The number of people earning PMP certification is increasing
quickly.
PMI and other organizations are offering new certification
programs (see Appendix B).
40. Introduction
What is a project?
The project management process
Project management information systems
41. Process Overview
A project is broken down into stages
Each stage in turn will be broken down into smaller and
more manageable tasks
It important to include planning as part of the project
management process
42. Four Phase Model
Lockyer (1996) describes a four phase model of the project
process
Conception - assess the feasibility of the project
Development - prepare the project plan
Realisation - carry out the plan
Termination - close the project
43. Conception Reports On…
The capability of the organisation to
Produce the product in the time required
Support capital outlay
Procure external items or services
Termination
Realisation
Development
Conception
44. Conception Reports On…
The acceptability of
Geographical requirements on procurement or ecology specified in
the project enquiry
Contract conditions specified in enquiry
Termination
Realisation
Development
Conception
45. Conception Reports On…
The final price for the product
The cost involved in development
The project budget
Specification of the product including quality and reliability
requirements
Termination
Realisation
Development
Conception
46. Conception
Can it be done?
Yes or No?
Termination
Realisation
Development
Conception
47. Conception ≈ Feasibility
It is possible that we will
reject the project!
What are the consequences
of:
Too much detail?
Insufficient detail?
48. Development
As the organisation is now committed to the project it must:
Appoint a project manager
Assemble project team
Draw up a detailed plan of work
Termination
Realisation
Conception
Development
49. Realisation
A reporting system is required to keep everyone informed:
Team, top management, customers etc.
A log is also kept of problems and how they were resolved
Conception Termination
evelopment
Realisation
50. Termination
Uses the project log to evaluate the project
and the process and indicate:
The success/failure of methods used
How team members performed
How reliable suppliers were
Conception
evelopment
Realisation
Termination
51. Termination
Capital equipment that was used for the project is now likely to
be redundant
Termination also involves getting rid of such equipment as
profitably as possible
Conception
evelopment
Realisation
Termination
52. Observations
Often the phases of the project will overlap
There is often a pause between conception and the other
phases
It is possible that each phase may be treated as a project in its
own right
This might affect continuity of the project
53. Introduction
What is a project?
The project management process
Project management information
systems
54. PM Information Systems
Projects need systems that can collect data in real time
concerning the project progress and costs
Data analysis and distribution of information must be carried
out as rapidly as possible
55. Ethics in Project Management
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Ethics is an important part of all professions.
Project managers often face ethical dilemmas.
In order to earn PMP certification, applicants must agree to the
PMP code of professional conduct.
Several questions on the PMP exam are related to professional
responsibility, including ethics.
56. Project Management Software
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There are currently hundreds of different products to assist in
performing project management.
Three main categories of tools:
Low-end tools: Handle single or smaller projects well; cost under
$200 per user.
Midrange tools: Handle multiple projects and users; cost $200-500
per user; Project 2003 most popular (includes an enterprise version).
High-end tools: Also called enterprise project management
software; often licensed on a per-user basis; VPMi Enterprise Online
(www.vcsonline.com).
57. Chapter Summary
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As the number and complexity of projects continue to grow, it is
becoming even more important to practice good project management.
A project has several attributes, such as being unique, temporary and
developed incrementally.
A framework for project management includes project stakeholders, the
nine knowledge areas, tools and techniques, and creating project
portfolios to ensure enterprise success.
Successful project managers must possess and development many skills
and lead their teams by example.
The project management profession continues to mature as more people
become certified and more tools are created.
58. Questions
What are the defining characteristics of
Software/Information Systems projects that make them
different from other types of project?
See Sommerville’s “Software Engineering” for examples
Is the development of an information system a project?
Explain your answer using information from this lecture
How does the four phase model compare to the waterfall
model of software development?
Editor's Notes
#12:Advantages of Using Formal 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
Higher worker morale
#13:QUESTION: Why do we need project management?
Project management applies to work as well as personal projects
Project management applies to many different disciplines (IT, construction, finance, sports, event planning, etc.)
Project management skills can help in everyday life