Chapter 1 Modern Project Management Mc GrawHillIrwin Copyright

Chapter 1 Modern Project Management Mc. Graw-Hill/Irwin Copyright © 2008 by The Mc. Graw-Hill Companies, Inc. All Rights Reserved.

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But First… Are You Ready To Be a Project Manager? Q: How do you put a giraffe into a refrigerator? A: Open the door and put the giraffe in. Keep it simple! 1 -3

Q: How do you put an elephant into a refrigerator? A: Open the door, take the giraffe out, then put the elephant in. Keep track of what you’ve done before. 1 -4

Q: The Lion King is hosting an animal convention. Which animal does not attend? A: The elephant. He’s in the refrigerator. Be logical… 1 -5

Q: There is a river you must cross, but crocodiles live in the river. How do you get across? A: Just swim across. All the animals are at the convention (except the elephant). …but don’t be afraid to think outside the box. 1 -6

According to Anderson Consulting, 90% of ‘professionals’ they tested got all of these wrong. 90% of the four year olds they asked got them right. This disproves the popular theory that most project managers have the wits of a four-year-old. 1 -7

What Is a Project? < < Project Defined q A complex, nonroutine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs. Major Characteristics of a Project q Has an established objective. q Has a defined life span with a beginning and an end. q Typically requires across-the-organizational participation. q Involves doing something never been done before. q Has specific time, cost, and performance requirements. 1 -8

Programs versus Projects < Program Defined q A series of coordinated, related, multiple projects that continue over an extended time and are intended to achieve a goal. q A higher-level group of projects targeted at a common goal. q Example: o Project: completion of a required course in project management. o Program: completion of all courses required for a business major. 1 -9

Comparison of Routine Work with Projects Routine, Repetitive Work Projects Taking class notes Writing a term paper Daily entering sales receipts into the accounting ledger Setting up a sales kiosk for a professional accounting meeting Responding to a supply-chain request Developing a supply-chain information system Practicing scales on the piano Writing a new piano piece Routine manufacture of an Apple i. Pod Designing an i. Pod that is approximately 2 X 4 inches, interfaces with PC, and stores 10, 000 songs Attaching tags on a manufactured product Wire-tag projects for GE and Wal-Mart TABLE 1. 1 1 -10

Project Life Cycle FIGURE 1. 1 1 -11

The Challenge of Project Management < The Project Manager q Manages temporary, non-repetitive activities and frequently acts independently of the formal organization. o Marshals resources for the project o Provides direction, coordination, and integration to the project team o Manages a diverse set of project stakeholders o Dependent upon others for technical answers o Is responsible for performance and success of the project q Must induce the right people at the right time to address the right issues and make the right decisions. 1 -12

The Importance of Project Management < Factors Leading to the Increased Use of Project Management: q Compression of the product life cycle q Global competition q Knowledge explosion q Corporate downsizing q Increased customer focus q Small projects that represent big problems 1 -13

Growth in PMP Certification 1 -14

Integrated Project Management Systems < Problems Resulting from the Use of Piecemeal Project Management Systems: q Do not tie together the overall strategies of the firm. q Fail to prioritize selection of projects by their importance of their contribution to the firm. q Are not integrated throughout the project life cycle. q Do not match project planning and controls with organizational culture to make appropriate adjustments in support of project endeavors. 1 -15

Integrated Management of Projects FIGURE 1. 2 1 -16

The Technical and Sociocultural Dimensions of the Project Management Process FIGURE 1. 3 1 -17

An Overview of Project Management 4 e. 1 -18

Key Terms < Program < ISO 9000 < Project life cycle < Project management professional (PMP) < Sociotechnical perspective 1 -19