1
Project Management Principles
ΥΠΕΥΘΥΝΟΣ:Θ. ΜΑΝΑΒΗΣ
Lecture 2 – Principles and concepts
Introduction to the module
What is the module about?• Focuses: combine fundamentals of project-based
learning and professional practice
Skills
Assessment
• Part 1 - Group project report - 80%
• Part 2 - Personal reflection - 20%
• Deadline for both:– Wednesday 14 January 2015
Recommended text
• Maylor, H; Project Management, Prentice Hall, 4th edition, 2010.
• Stellman, A., Green, J., Applied Software Project Management, O’Reilly, 2005
• Meredith, J. R., 2010, Project Management: A Managerial Approach, 8th edition, John Wiley and Sonst, 3rd edition, McGraw-Hill
Principles
• Know what is and what is not a project
• Fundamental in modern organisations and
the careers of employees
• Learn from the past to understand the
current state and opportunities for the
future
Learning objectives
• Identify the definitions of a project and the task of
management within a range of projects
• Demonstrate the importance of successful project
management to individuals, organisations and
economies
• Recognise the development of the modern subject
along with some of the challenges and limitations
Historical perspective
Examples:– The Great Pyramids of Giza (2,550 B.C.)– The Great Wall of China (221 B.C. - 206 B.C.)
• Exceptional planning• Coordination• Allocation • Hundreds of thousands of workers
– Paid and slave labour
The early years: late 19th century
Project management emerged in the growing
complexity of commerce
– Seen in transportation, to manufacturing
– Large scale projects caused large scale management
decisions.
– Example is the 1862 Transcontinental Railroad (San
Francisco to Iowa)
Key dates in project management
1917 – Henry Gantt developed the Gantt chart
1942 – Manhattan Project (a research and development project that produced
the first atomic bombs during World War II)
1950’s – Critical path analysis developed by Du
Pont, PERT by US Navy/General Dynamics
1958 – Network diagrams (Activity On Node (AON) and Activity On
Arrow (AOA) ) developed by US Navy Polaris
missile/submarine project
Modern project management 1900-1950 – Henry Gantt
• Modern project management – Construction– Engineering– Defence
• Henry Gantt forefather of project management • Known for planning and control techniques• “Gantt” chart keeps track of project schedule.
Modern project management 1900-1950 – Frederick Winslow Taylor
Sought a scientific way to improve efficiency in the work place:• Replace working by "rule of thumb," or simple habit
and common sense, for scientific method of determining the most efficient way to perform specific tasks.
• So that tasks are broken down into small components
– work breakdown and piecemeal (=one
piece at a time)Source: mindtools 2013
Modern project management 1950 and beyond - PERT
PERT by US Navy/General Dynamics – is a
mathematical scheduling method
• “Program Evaluation Review Technique” or PERT
• analyses key tasks to identify minimum amount
of time
Modern project management 1950 and beyond - CPM
• The “Critical Path Method” developed for plant maintenance projects
• An algorithm for scheduling a set of project activities– that add up to the longest project duration
• A CPM diagram is based on the following project elements:– List of all activities required for project – Length of time for each activity (optimistic and
pessimistic)– Dependencies between the activities.
So what really is a project?
A project is a temporary endeavor undertaken to produce a unique product or service
– Temporary – Definitive beginning and end– Unique – New undertaking, unfamiliar ground
Temporary UniqueCharacteristics of Projects
Project attributes• A project:
– Has a unique purpose– Is temporary– Is developed using progressive elaboration
• Specifications of the project are initially broad and then refined and more detailed as the project progresses
– 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• Unclear objectives, difficult to estimate time to complete and cost,
dependence on external factors
Information Technology Project Management, Fifth Edition, Copyright 2007
Defining a project
Select a dreamUse your dream to set a goalCreate a planConsider resourcesEnhance skills and abilitiesSpend time wiselyStart! Get organised and go
What is project management?• Project management is “the application of
knowledge, skills, tools and techniques to project activities to meet project requirements” (PMBOK® Guide, Third Edition, 2004, p. 8)
• Project managers strive to meet the triple constraint by balancing project scope, time, and cost goals
Project Management Body of Knowledge (PMBOK)
A Guide to the Project Management Body of Knowledge — Fifth Edition provides guidelines for managing individual projects and defines project management related concepts. It also describes the project management life cycle and its related processes, as well as the project life cycle.
The Guide recognizes 47 processes that fall into five basic process groups and ten knowledge areas that are typical of most projects, most of the time.
Project Management Body of Knowledge (PMBOK), Five Process Groups
• Initiating : Those processes performed to define a new project or a new phase of an existing project by obtaining authorization to start the project or phase.
• Planning : Those processes required to establish the scope of the project, refine the objectives, and define the course of action required to attain the objectives that the project was undertaken to achieve.
• Executing : Those processes performed to complete the work defined in the project management plan to satisfy the project specifications
• Monitoring and Controlling : Those processes required to track, review, and regulate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes.
• Closing : Those processes performed to finalize all activities across all Process Groups to formally close the project or phase.
Project management vs general managementGeneral management Project management
Responsible for managing the status quo Responsible for overseeing change
Authority defined by management structure Lines of authority ‘fuzzy’
Consistent set of tasks Ever-changing set of tasks
Responsibility limited to their own function Responsible for cross-functional activities
Works in ‘permanent’ organisational structures Operates within structures that exist for the life of the project
Tasks described as ‘maintenance’ Predominantly concerned with innovation
Main task is optimisation Main task is resolution of conflict
Success determined by achievement of interim (=ενδιάμεσοι) targets
Success determined by achievement of stated end-goals
Limited set of variables Contains intrinsic uncertainties
Where project management sitsPortfolios Projects and programs grouped together to contribute to the entire enterprise’s success
Programs A group of related projects managed in a co-ordinated way to obtain benefits and control not available from managing them individually
Project Management Institute (2008) A guide to project management body of knowledge 4th Ed
Examples of common IT programs
– Infrastructure- wireless Internet access, upgrading h/w & s/w, developing corporate standards for IT
– Applications development – updating an ERP system, purchasing a new off-the-shelf billing system, adding new feature to CRM (Customer Relationship Management) system
– User support – daily operational support, upgrade e-mail system, develop technical training for users
Information Technology Project Management, Fifth Edition, Copyright 2007
The project managersPortfolio managers help their organizations make wise investment decisions by helping to select and analyze projects from a strategic perspective
A program manager provides leadership and direction for the project managers heading the projects within the program
Organizations group and manage projects and programs as a portfolio of investments that contribute to the entire enterprise’s success
Information Technology Project Management, Fifth Edition, Copyright 2007
Project management compared to project portfolio management
Best practice
Organisations need to follow basic principles of project management, such as:
– ensuring projects are driven/fit top level business strategy
– making sure unwanted projects are screened out as soon as possible
– engaging stakeholders at all stages of a project, and encourage teamwork and commitment at all times. Ignoring them often leads to project failure
Robert Butrick, author of The Project Workout
Elements of project management
• In the project portfolio• Management knowledge areas• Using project management tools and
techniques (methodology)• Stakeholders (strategic management)• Maintaining a schedule (time management)• Coordinating different groups (resource
management, control )
Project management framework
Information Technology Project Management, Fifth Edition, Copyright 2007
The value of using formal project management methods
• 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)
Information Technology Project Management, Fifth Edition, Copyright 2007
Examples of IT projects• A help desk or technical worker replaces ten laptops
for a small department• A small software development team adds a new
feature to an internal software application for the finance department
• A college campus upgrades its technology infrastructure to provide wireless Internet access across the whole campus
• A cross-functional task force in a company decides what Voice-over-Internet-Protocol (VoIP) system to purchase and how it will be implemented
Information Technology Project Management, Fifth Edition, Copyright 2007
Project success
Customer
Requirements satisfied/exceeded
Completed within
allocated time frame
Completed within
allocated budgetAccepted by the
customer
Project success factors• Stakeholder involvement• Executive management support• Clear statement of requirements• Proper planning• Realistic expectations• Smaller project milestones• Competent staff• Ownership (=taking personal responsibility for the project)
• Clear vision and objectives• Hard working and focused staff
Why projects fail
• Failure to align project with organizational objectives
• Poor scope• Unrealistic expectations• Lack of executive sponsorship• Lack of project management• Inability to move beyond individual and
personality conflicts• Politics
Project failure
Scope Creep
Lack of resources
Poor Requirements Gathering
Unrealistic planning and
scheduling
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