ELC/BUS/PSA 347Day 2

Questions?? Blackboard updates IP Projects discussions Why project management?? Assignment 1 posted in Blackboard

◦ Due in one week; September 15 @ 3:35 PM

Agenda

1-2

Team based◦ 2 teams

Think of a large project that will require a project plan

Must require at least 10 people to complete◦ Must require 10 or more weeks to complete◦ Must be constrained by a budget

Suggestions◦ Plan an event◦ Build something

Product, business, capital asset◦ Change something

Integrated Project

Introduction: Why Project Management?

Chapter 1

1-4

© 2007 Pearson Education

Examples of projects◦ Split the atom◦ Chunnel between England and France◦ Introduce Windows XP

“Projects, rather than repetitive tasks, are now the basis for most value-added in business”

-Tom Peters

Introduction

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Project Take place outside

the process world Unique and separate

from normal organization work

What is a Project?

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Process• Ongoing, day-to-day

activities• Use existing systems,

properties, and capabilities

A project is a unique venture with a beginning and an end, conducted by people to meet established goals within parameters of cost, schedule and quality.

Complex, one-time processes

Limited by budget, schedule, and

resources

Developed to resolve a clear goal or set of

goals (deliverables)

Customer-focused

Elements of Projects

1-7

Ad-hoc endeavors with a clear life cycle

Building blocks in the design and execution of organizational strategies

Responsible for the newest and most improved products, services, and organizational processes

Provide a philosophy and strategy for the management of change

General Project Characteristics (1/2)

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Entail crossing functional and organization boundaries

Traditional management functions of planning, organizing, motivating, directing, and controlling apply

Principal outcomes are the satisfaction of customer requirements within technical, cost, and schedule constraints

Terminated upon successful completion

General Project Characteristics (2/2)

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Process & Project Management (Table 1.1)

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Process

1. Repeat process or product

2. Several objectives

3. On-going

4. People are homogeneous

5. Systems in place

6. Performance, cost, & time known

7. Part of the line organization

8. Bastions of established practice

9. Supports status quo

Project

1. New process or product

2. One objective

3. One shot – limited life

4. More heterogeneous

5. Systems must be created

6. Performance, cost & time less

certain

7. Outside of line organization

8. Violates established practice

9. Upsets status quo

Software & hardware projects fail at a 65% rate

Over half of all IT projects become runaways

Up to 75% of all software projects are cancelled

Average cost overrun is 45%; schedule overrun is 63%; with only 67% of originally contracted features

47% of IT projects delivered but not used, 29% paid for but not delivered; 19% abandoned

Information Technology Project “Success”

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1-12

Happens more often than most people think!

1. Shortened product life cycles

2. Narrow product launch windows

3. Increasingly complex and technical

products

4. Emergence of global markets

5. Economic period marked by low inflation

Why are Projects Important?

1-13

3 Gorges Dam

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18,000 workers and a $73 billion cost estimate, idea in 1920’s, construction began in 1994 and is to be completed in 2009

http://www.chinapage.com/3gorge/3gorge.html

Project Life Cycles

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Man Hours

Conceptualization Planning Execution Termination

Project Life Cycles and Their Effects

1-16

Conceptualization Planning Execution Termination

Uncertainty

Client Interest

Project Stake

Creativity

Resources

Success

Budget

Client

Acceptance

Schedule Performance

Determinants of Project Success

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1. System quality

2. Information quality

3. Use

4. User satisfaction

5. Individual Impact

6. Organizational impact

Six Criteria for IT Project Success

1-18

Four Dimensions of Project Success

1-19

Project

Completion

Time

Importance

1Project

Efficiency

4Preparing forThe Future

2Impact onCustomer

3 Business Success

Iron triangle

Information System

Benefits (Organization)

Benefits(Stakeholders)

CostQualityTime

MaintainabilityReliabilityValidityQualityUse

Improved efficiencyImproved effectivenessIncreased ProfitsStrategic goalsOrganization learningReduced Waste

Satisfied usersSocial and environmental ImpactPersonal DevelopmentProfessional learning, Contractors’ profitsCapital suppliers. contentProject team, economicImpact to surrounding Community

Atkinson Model

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Determines Organizational adaptation of Best Practices◦ Analyze and assess◦ Benchmark◦ Change◦ Re-Measure

Using Maturity Models

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1-22

0 Not defined or poor1 Defined but substandard2 Standardized3 Industry leader or cutting edge

0

0.5

1

1.5

2

2.5

3Project Scheduling

Structural Support forProject Management

Portfolio Management

Coaching, Auditing andEvaluating Proejcts

Control Practices

Project StakeholderManagement

Networking BetweenProjects

Personnel Development forProjects

Spider Web Diagram

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Project management maturity models

◦ Center for business practices

◦ Kerzner’s project management maturity model

◦ ESI International’s project framework

◦ SEI’s capability maturity model integration

Developing Project Management Maturity

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Project Management MaturityGeneric Model

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Low Maturity

Ad hoc process, no common language, little support

Moderate MaturityDefined practices, training programs,

organizational support

High Maturity

Institutionalized, seeks continuous

improvement

Project Elementsand Text Organization

Text organizatoion Foundation

Chapter 1 -    Introduction: Why Project Management?

Chapter 2 -    The Organization Context: Strategy, Structure, and Culture

Chapter 3 -    Project Selection and Portfolio Management

Chapter 4 -    Leadership and the Project Manager

Planning Chapter 5 -    Scope Management Chapter 6 -    Project Team

Building, Conflict, and Negotiation Chapter 7 -    Risk Management Chapter 8 -    Cost Estimation and

Budgeting

Planning (con’t) Chapter 9 -    Project

Scheduling: Networks, Duration Estimation, and Critical Path

Chapter 10 -  Project Scheduling: Lagging, Crashing, and Activity Networks

Chapter 11 -  Critical Chain Project Scheduling

Chapter 12 -  Resource Management

Implementation Chapter 13 -  Project Evaluation

and Control Termination

Chapter 14 -  Project Close-out and Termination

Project Elements and Text Organization

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1-29

http://www.pmi.org/

http://www.maxwideman.com/papers/comparing/intro.htm