Project Management:

A Managerial Approach 8/e

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

Published by John Wiley & Sons, Inc.

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

Chapter 1-1
 Project Management
The application of knowledge, skills, tools,
and techniques to project activities in order
to meet or exceed stakeholder needs and
expectation from a project

Chapter 1-2
The Definition of a
“Project”

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
The Definition of a
“Project”

Program
Project
Task

Work
package
Work
unit
Chapter 1-8
Projects vs Programs vs
Portfolios
Programs are a complex of goals,
policies, procedures, steps to be taken,
resources to be employed, and other
elements necessary to carry out a given
course of action.
Projects are temporary endeavor with
specific and finite task to be accomplished
A portfolio is a group of different
programs and/or projects within the same
organization
Projects vs Programs vs
Portfolios
Example: Programs
Vision 2021: Digital BD & Middle Income Country
Vision 2030: Upper Middle-Income Country Portfolio
Vision 2041: High-Income Country (HIC)

Example: Projects under Program-Vision 2041

e.g.-1: Increase literacy rate by 10%
e.g.-2: Increase employment opportunity by 25%
e.g.-3: Achieve 15 goals with distinction under SDGs
e.g.-4: Escalate participation of women in labor force by 15%
Projects vs Programs vs
Portfolios
Example: Program
Make Cox's Bazar Sea Beach as world's topmost tourists
spot by 2050

Example: Projects under this Program

1. Construction of luxury hotels, motels, and rest
houses

Portfolio
2. Establishment of recreational parks
3. Instituting of world cultural center
4. Construction of roads, highways and transportation
means. ……etc……
Projects vs Programs vs
Portfolios
Which one is a project?
a. Preparing monthly employment report
b. Reduction of pollution level in Dhaka city by
5% within 2022
c. Construction of Padma Bridge
d. Effective implementation of national budget
Objectives of a Project
3 Project Objectives:
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
Objectives of a Project
3 Project Objectives:
Time

Target

Cost Performance
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
Project Stakeholders
• Performing • Customer
organization

Project Project
manager team

Project Functional
Sponsor managers

• Business • Supplier
partners
Characteristics of a
Project

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

Chapter 1-9
Stages of Life Cycle
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

e.g. Construction of
building

Chapter 1-13
Fig. Common stretched-S project life cycle
The Project Life Cycle

 Time distribution of project effort is characterized by

slow-rapid-slow

Chapter 1-14
Fig. Time distribution of project effort
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

e.g. Software
project,
chemical
engineering
project
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

Figure 1-6: Estimated project cost made at project start

Risk During Project Life
Cycle
 Uncertainty decreases as the project moves toward
completion

Figure 1-7: Estimated project cost made at t0, t1 and t2

Types of project
Parts of a standard project

Chapter 1-19
 Triple constraints of PM

On any given project,

there are fundamentally
three constraints,
1. The amount of work
you’re going to deliver.
2. The amount of money
you’re willing to spend.
3. How long the project
can run.
Triple constraints of PM

Project cost: the amount the customer has

agreed to pay for acceptable project deliverables.
Fixed costs
Variable costs
Direct cost
Indirect cost
Sunk cost: Sunk cost, in economics and
finance, a cost that has already been incurred
and that cannot be recovered.
Triple constraints of PM

Project schedule (TIME): time table that

specific when each activity should be start and
finish.
Project scope (Quality): is the scope of a
project/ all work must be done to satisfy the
customer that the deliverables meet the
requirements or acceptance criteria agreed upon
at the onset of the project.
Triple constraints of PM

Three common cases:

1. Single Constraint.
2. Double Constraint.
3. The cop out.
Triple constraints of PM
Single constraints: Double constraints:
delivery of a set number of prioritizing one of the two
features is most important, constraints over the other.
while schedule &
budget being less important.
Triple constraints of PM

The cop out: In this case,

the sponsor basically puts
the focus exactly in the
middle, saying that
everything is important.
This does not set up a
project for success, as there
are no flexibility along any
dimensions.
 Triple constraints of PM
Jim Highsmith proposes that those
dimensions can be prioritized into:
1. “Fixed”.
2. “Flexible”.
3. “Accept”.

Dimensions Fixed Flexible Accept Target

Time Delivered by December 30, 2021

Cost BDT 100M (+/-) 10M

Scope Luxury hotel project in Khulna

Project Methodologies

Methodology: methodology is the

specific procedures or techniques used to
identify, select, process, and analyze
information about a topic.
Project Methodology: ?

Chapter 1-19
Project Methodologies

 Waterfall
 Agile
 Scrum

Chapter 1-19
Waterfall

Chapter 1-19
Agile

Chapter 1-19
Scrum

Chapter 1-19
Scrum

Chapter 1-19
Projects in Contemporary
Organizations

Questions?

Chapter 1-26
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

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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