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Chapter 1

Projects in Contemporary
Organizations

Copyright 2009 John Wiley & Sons, Inc.

Introduction

 Much of project management developed by the
military
– Navy’s Polaris program
– NASA’s space program
– Strategic defense initiative
 Project management has found wide acceptance in
industry
 It has many applications outside of construction
– Managing legal cases
– Managing new product releases

The growing demand for a broad range of complex goods and services 3. Increased worldwide competition  All of these contribute to the need for organizations to do more and to do it faster  Project management is one way to do more faster .Introduction Continued  Main forces in driving the acceptance of project and other forms of management: 1. The exponential growth of human knowledge 2.

China  Projects are getting larger over time – Flying: balloons  planes  jets  rockets  reusable rockets  The more we can do. or Chunnel – Denver International Airport – Panama Canal expansion project – Three Gorges Dam. the more we try to do .Projects Tend to be Large  Projects tend to be large – The Channel Tunnel.

The tools are become cheaper 3. The techniques are becoming more widely taught and written about . More people are seeing the advantages of project management techniques 2.Project Management Also Getting Smaller 1.

cost. Time 2. and performance are all related on a project .Main Goals of Project Management 1. Cost 3. Performance  Time.

Direct Project Goals: Performance. Time Figure 1-1 . Cost.

000 in 2007  The Project Management Journal and PM Network are the leading project management journals .500 members in 1990 to over 260.Project Management Institute (PMI)  The Project Management Institute is the major project management organization  Founded in 1969  Grew from 7.

Project Manager  Project manager is the key individual on a project  Project manager is like a mini-CEO  While project manager always has responsibility. may not have necessary authority .

Trends in Project Management  Achieving strategic goals  Achieving routine goals  Improving project effectiveness  Virtual projects  Quasi-projects .

Consensual management 2. Projects as preferred way to accomplish goals . Systems approach 3.Recent Changes in Managing Organizations 1.

they began to “trickle down” to smaller projects  It has also moved out of just manufacturing to services .The Definition of a “Project”  Modern project management began with the Manhattan Project  In the early days. project management was used mainly for very complex projects  As the tools became better understood.

Major Characteristics of a Project  Importance  Performance  Life cycle with a finite due date  Interdependencies  Uniqueness  Resources  Conflict .

Why Project Management?  The main purpose for initiating a project is to accomplish some goal  Project management increases the likelihood of accomplishing that goal  Project management gives us someone (the project manager) to spearhead the project and to hold accountable for its completion .

Negative Side to Project Management  Greater organizational complexity  Higher probability organizational policy will be violated  Says managers cannot accomplish the desired outcome  Conflict .

The Project Life Cycle Figure 1-3 .

Time Distribution of Project Effort Figure 1-4 .

Another Possible Project Life Cycle Figure 1-5 .

Risk During at the Start of the Life Cycle Figure 1-6 .

Risk During the Life Cycle Figure 1-7 .

The Structure of this Text  Follows the project life cycle  Some topics stand-alone  Other topics incorporated throughout .

Part I: Project Initiation 1. The Project in the Organizational Structure . Projects in Contemporary Organizations 2. Strategic Management and Project Selection 3. The Project Manager 4. Negotiation and the Management of Conflict 5.

Part II: Project Planning 6. Budgeting and Cost Estimation 8. Project Activity Planning 7. Scheduling 9. Resource Allocation .

Part III: Project Execution 10. Project Control 12. Project Termination . Project Auditing 13. Monitoring and Information Systems 11.