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The World of Project Management

This document discusses what projects are and provides an overview of project management. It defines what a project is, characteristics of projects, differences between project and general management, project life cycles, selecting and prioritizing projects, managing risk and uncertainty, and developing an aggregate project plan.

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Ganeshalingam Ramprasanna
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52 views

The World of Project Management

This document discusses what projects are and provides an overview of project management. It defines what a project is, characteristics of projects, differences between project and general management, project life cycles, selecting and prioritizing projects, managing risk and uncertainty, and developing an aggregate project plan.

Uploaded by

Ganeshalingam Ramprasanna
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Chapter 1

The World of Project Management

MEM 612 Project Management


WHAT IS A PROJECT?

MEM 612 Project Management


Why the emphasis on project
management?
Many tasks do not fit neatly into business-
as-usual.
Need to assign responsibility and authority
for achievement of organizational goals.

MEM 612 Project


Management
Characteristics of Projects
Unique
Specific Deliverable
Specific Due Date

MEM 612 Project


Management
Other Common
Characteristics of Projects
Multidisciplinary
Complex
Conflict
Part of Programs

MEM 612 Project


Management
PMI Definition
A temporary endeavor undertaken to create
a unique product or service

Project Management Institute, 2000

MEM 612 Project


Management
PROJECT MANAGEMENT
VS. GENERAL
MANAGEMENT

MEM 612 Project Management


Skill Requirements for
Effective Project
Management
Conflict Resolution
Creativity and Flexibility
Ability to Adjust to Change
Good Planning
Negotiation
win-win versus win-lose

MEM 612 Project


Management
WHAT IS MANAGED? THE
THREE GOALS OF A
PROJECT

MEM 612 Project Management


Figure 1-1: Performance,
Cost, and Time Project
Targets

MEM 612 Project


Management
THE LIFE CYCLES OF
PROJECTS

MEM 612 Project Management


Figure 1-2 The Project Life
Cycle

MEM 612 Project


Management
Figure 1-3 An Alternate
Project Life Cycle

MEM 612 Project


Management
SELECTING PROJECTS

MEM 612 Project Management


Nonnumeric Selection
Methods
The Sacred Cow
The Operating/Competitive Necessity
Comparative Benefits

MEM 612 Project


Management
Figure 1-4 The Q-Sort
Method

MEM 612 Project


Management
Numeric Selection Methods
Financial Assessment Methods
payback period
discounted cash flow
Scoring Methods
unweighted 0-1 factor method
weighted factor scoring method

MEM 612 Project


Management
Payback Period

Initial Fixed Investment


Annual Net Cash Inflows

MEM 612 Project


Management
Discounted Cash Flow

n
Ft
NPV (project) - I 0
t 1 (1 k )
t

where
I0 = the initial investment
Ft = the net cash flow in period t
k = the required rate of return or hurdle rate
MEM 612 Project
Management
The Weighted Scoring Model

n
Si sij w j
j 1

where
Si = the total score of the ith project
sij = the score of the ith project on the jth criterion
wj = the weight or importance of the jth criterion

MEM 612 Project


Management
Confronting Uncertainty
The Management of Risk

MEM 612 Project Management


What uncertainties are
encountered in project
management?
Time required to complete a project
Availability of key resources
Cost of resources
Timing of solutions to technological
problems
Actions taken by competitors

MEM 612 Project


Management
Can uncertainty surrounding
projects ever be eliminated?
No, but it can be managed

MEM 612 Project


Management
Risk Analysis
Estimate probabilities or distributions
associated with key parameters
Develop analytic or simulation model
Analyze distribution of outcomes
generated by model

MEM 612 Project


Management
Risk Analysis with Crystal
Ball
Assumption Cells
Distribution Gallery
Forecast Cells

MEM 612 Project


Management
THE PROJECT PORTFOLIO
PROCESS

MEM 612 Project Management


The Project Portfolio Process
Step 1: Establish a Project Council
Step 2: Identify Project Categories and Criteria
Step 3: Collect Project Data
Step 4: Assess Resource Availability
Step 5: Reduce the Project and Criteria Set
Step 6: Prioritize the Projects within Categories
Step 7: Select the Projects to be Funded and
Held in Reserve
Step 8: Implement the Process

MEM 612 Project


Management
The Aggregate Project Plan

MEM 612 Project


Management
Figure 1-12 An Example
Aggregate Project Plan

MEM 612 Project


Management
Copyright
Copyright John Wiley & Sons, Inc.
All rights reserved. Reproduction or translation of this work beyond that
permitted in Section 117 of the 1976 United States Copyright Act
without express permission of the copyright owner is unlawful.
Request for further information should be addressed to the
Permissions Department, John Wiley & Sons, Inc. The purchaser
may make back-up copies for his/her own use only and not for
distribution or resale. The Publisher assumes no responsibility for
errors, omissions, or damages, caused by the use of these programs
or from the use of the information herein.

MEM 612 Project


Management

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